The Rwanda Utilities Regulatory Authority (RURA) has increased pump prices for petrol and diesel, citing the instability in the global oil market, and also in line with reviewing prices every two months. The new prices take effect on December, 19 and will be reviewed on February 14, according to a statement from the regulator. According to the new prices, petrol has increased to Rwf 1,225 per litre from Rwf 1,143, while diesel increased from 1,054 per litre to Rwf 1,140. Without government intervention by way of subsidies, prices of diesel and petrol would have risen by Rwf 86 and Rwf 82 respectively. The subsidies were introduced in May this year when global oil prices began going up after a sharp decline last year occasioned by reduced demand as a result of the Covid-19 related lockdowns and travel restrictions. “The decision was made to prevent the effects of high increase of prices, which could impede the pace of the nations economic recovery after being delayed with Covid-19 effects,” read the statement signed by RURA Director-General Ernest Nsabimana. Minister of Infrastructure Claver Gatete previously told The New Times that the move to intervene also prevent a jump in prices took into context the type of fuel used by public transporters and trucks as well as the effect on the cost of living. “We know that 70 per cent of all fuel consumed is diesel, this is what is used by public buses, trucks moving products across the country as well as construction equipment. Because of that, the government has decided to subsidize the Rwf 80 to avoid driving up the cost of living,” he said. He added that the measures were taken into consideration to the pandemic’s effect on the public’s disposable incomes, livelihoods, and the need to cushion the general public. Internationally, oil prices have been fluctuating since the Covid-19 outbreak, complicating the ability to predict the global market.
