Prime Minister Justin Nsengiyumva has said the government is using subsidies to cushion citizens from rising global fuel prices, as international market pressures continue to push up the cost of diesel imports. He said this on Saturday, June 6, during a press briefing on Rwanda’s current economic situation and issues affecting the daily lives of citizens. “The war [the ongoing conflict in the Middle East] is causing an increase in imported goods, including petroleum products, gas, and fertilisers. This rise in prices is also affecting the cost of locally produced goods in our country,” he explained. ALSO READ: Transport fares remain unchanged as diesel price increases He pointed out that the government is aware of the pressure that rising fuel costs place on citizens and therefore, measures are being taken to reduce the impact on households. On Friday, June 6, Rwanda Utilities Regulatory Authority (RURA) announced that diesel prices have increased by Rwf700 per litre. “However, within that price, there is a government subsidy of 18 per cent,” Prime Minister said. “This means the actual price we should have announced for diesel per litre is Rwf3,581, but you have seen that we announced a lower price Rwf2,938, he added. Nsengiyumva promised the government will continue monitoring global market conditions while taking steps to prevent sharp price increases. “You have also seen that the price of petrol has remained unchanged. This is a decision we make carefully, taking into account the economy and the impact that price increases would have.” To prevent transport fare increases, he noted that the government is also subsidising public transport services, especially those relying on diesel. “For example, a person travelling from Nyabugogo to Musanze would normally pay Rwf4,281 without the subsidy, but with the subsidy they will continue to pay Rwf3,821 as before. This means the government is covering about Rwf460 per ticket.” The government has also expanded public transport infrastructure, including increasing the number of buses and dedicated bus lanes, as part of efforts to shield citizens from fuel-related shocks. ALSO READ: Transport fares revised with new fuel prices “This is aimed at ensuring that even if fuel prices rise, people who are unable to use private vehicles still have reliable transport options to continue their daily activities. This is already showing results, as public transport usage has increased by 15 per cent,” he said. The Prime Minister added that plans are underway to further expand the bus fleet, including the introduction of electric buses. “We plan that by the end of the year, we may increase the number of buses by adding another 100, so that by the end of next year we will have added 300 electric buses.”
