The statement released by Rwanda Utilities Regulatory Authority (RURA) indicates that the cost of petrol increased by Rwf103 and Diesel by Rwf167 following price changes on the international market.
On another note, it is said that the prices would have gone much higher, hadn’t the Government of Rwanda allocated Rwf6 billion to subsidize petroleum products.
The new prices will go into effect for two months starting from 4th April 2022 as the Minister of Infrastructure, Dr. Erneste Nsabimana told RBA on Sunday.
Generally, the price of fuel products has been on high rise since May 2021 after the first COVID-19 lockdown.
The price hike after the first lockdown was mainly attributed to the large demand yet oil extraction seemed to have halted due to COVID-19 related restrictions.
Pump prices soared again at the onset of fighting between Russia and Ukraine in February 2022, becoming the highest price hike registered in 10 years.
Minister Nsabimana has explained that the latter affected the entire World, Africa, the region and Rwanda as well resulting into increase in prices.
He revealed that it might take one month for petroleum products to reach Rwanda due to the long travelled distance as they are transited through the sea to arrive in Kigali.
Dr. Nsabimana assured citizens that the Government is monitoring the situation to protect their interests.
As he explained, the Government intervenes in such situation and considers how to cushion consumers and mitigate possible adverse impact through a subsidy program.
“That is when the subsidy program and tax exoneration apply. The Government has cushioned consumers again to avoid higher fuel price increase,” he said.
Dr. Nsabimana disclosed that the Government has allocated Rwf6 billion to subsidize fuel pump prices to prevent higher prices and related consequences for the period of two months.
Hadn’t the Government introduced the subsidy, the price of diesel would be set at Rwf1483, an increase by more than Rwf200 while petrol would cost Rwf1474 per liter.
It is apparent that the hike in prices has a direct effect on public transport. The current prices were revised in December 2020 where the Government of Rwanda subsidized the cost to lessen burdens on passengers.
The subsidy saw the reduction by Rwf1000 for passengers travelling from Kigali to Rubavu or Kigali to Rusizi among others.
The current transport fare from Kigali to Rubavu is set at Rwf3310 which was supposed to be Rwf4040 without subsidy. Travelling to Kimironko from Nyabugogo by public bus costs Rwf253 but was supposed to cost Rwf318, hadn’t the Government introduced the subsidy.
Dr. Nsabimana has revealed that the existing prices remain the same.
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