The Rwanda Utilities Regulatory Authority (RURA) has increased pump prices for gasoline and diesel, attributing the changes to instability of oil prices in the global market, and also in line with reviewing prices every two months. The new prices take effect on March 06 and will be reviewed on May 05, according to a statement from the regulator. According to the statement, petrol (Premium Motor Spirit) has increased to 1,256 Rwf per litre from Rwf 1,225 while diesel (Automotive Gas Oil) increased from Rwf 1,140 to Rwf 1,201. Without government intervention by way of subsidies, prices of diesel and gasoline would have risen by Rwf 121 and Rwf 64 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 in order to avoid the negative consequences of exaggerated fuel price increase that would cause the generalised price increase (inflation) and therefore decelerate the speed on which Rwandas economy is recovering from the impact of Covid-19 outbreak, according to RURA.
