The Rwanda Utilities Regulatory Authority (RURA) has raised the prices for petrol and diesel, citing the volatility in the global oil market.
The new prices, which will take effect on April 4, mean that the pump for petrol has increased to Rwf 1,359 per litre from 1,256. Diesel was increased from 1,201 per litre to Rwf 1,368
Normally, the prices are reviewed every two months which means upon the old price the new ones were expected to be released on May 5, according to RURA.
The Director-General of RURA Deo Muvunyi told reporters in Kigali that the ‘abnormal’ increase in prices of fuel on the international market was creating the fuel shortage and prompted the regulator to increase pump prices.
Without government intervention by way of subsidies, prices of diesel and gasoline would have risen by Rwf 282 and Rwf 218 respectively, the regulator said.
The subsidies were introduced in May 2021 when global oil prices began going up after a sharp decline occasioned by reduced demand as a result of the Covid-19 related lockdowns and travel restrictions.
The decision was also taken to avoid the negative consequences of exaggerated fuel price increases that would cause the generalised price increase (inflation) and therefore decelerate the speed at which Rwanda’s economy is recovering from the impact of the Covid-19 outbreak, according to RURA.