The government has slashed pump prices by Rwf20 to Rwf1,010 per litre, down from Rwf1,030.
According to a notice issued by the Ministry of Trade and Industry yesterday morning, the reduction of base pump price for both super petrol and diesel was occasioned by a decline in oil prices on the international market since December last year.
“The Ministry of Trade and Industry wishes to inform the public that with effect from Thursday March 6, (yesterday) the base price for both Super petrol and diesel must not exceed Rwf1,010 a litre,” the ministry indicated in the statement.
Pump prices were increased in November last year, from Rwf1,000 to Rwf1,030 a litre following a rise in global oil rates.
Omar Kabungo of Kayonza Distributors Company, a distributor of Uganda-based Mukwano Industries products, said the reduction was good news, especially for in-country transport.
Brent crude was steady yesterday at just below $108 a barrel, as investors looked for direction after a heavy sell-off in the two previous sessions prompted by easing geo-political risk over the crisis in Ukraine and US data suggesting weaker oil demand.
Oil prices have fallen between $4 and $5 a barrel since spiking on Monday due to the threat of an armed conflict in Ukraine and tension between Russia and the West over the former Soviet republic.
The drop was aggravated by a larger than expected rise in US crude stocks and by data showing private employers in the United States added fewer workers than forecast in February and services sector growth hit a four-year low.
Additional reporting by Agencies