Government has raised pump prices for petrol and diesel, attributing the changes to the instability of oil prices on the world market, and also in line with price review every two months.
The new prices come into effect on March 6 and will be reviewed again on May 5, according to a statement from the Rwanda Utilities Regulatory Authority (RURA).
A statement from RURA indicated that, gasoline went from Rwf.1,225 to Rwf.1,256 per liter while diesel was increased from Rwf.1,140 to Rwf.1,201 per liter. Without government intervention in the form of subsidies, diesel and gasoline prices would have increased by Rwf.121 and Rwf.64 respectively.
The subsidies had been introduced in May 2021 when global oil prices started to rise after a sharp drop caused by reduced demand due to lockdowns and travel restrictions linked to the coronavirus pandemic.
The decision was also taken in order to avoid the negative consequences of an exaggerated increase in the price of fuel which would lead to a general increase in prices (inflation) and therefore slow down the speed at which the Rwandan economy recovers from the impact of the global health crisis, according to RURA.
