Pump prices of fuel have increased to Rwf 860 from Rwf 825 per litre, owing to government’s implementation of the second increment in fuel levy, according to memos sent to fuel dealers.
Speaking to The New Times, the fuel dealers’ chairman, Victor Ndibwami said that the letter from the Ministry of Trade and Industry (MINICOM), gave the fuel levy and international prices as the reason for the increase.
“The fuel levy is the last increase since it was decided that each litre of petrol and diesel will be charged to raise money for maintaining our roads,” he explained.
Government proposed an increment on fuel levy from Rwf20 to Rwf 62.4 per litre in order to bridge the deficit in the Road Maintenance Fund (RMF), which has an annual budget of Rwf10 billion.
The Ministry of Infrastructure projected that the total fuel levy of Rwf 62 per litre would raise the RMF annual budget to Rwf16 billion.
Ndibwami added that the international prices have also increased, considering the trends in the last two months.
It is the second time fuel prices have increased by Rwf 35 countrywide as a result of the fuel charge and the international price.
Two months ago, the pump prices of petrol and diesel increased to Rwf 825 from Rwf 795 per litre.
MINICOM had however projected that the last fuel levy increase of 50 percent could not be reflected on the pump price.
It was not possible to get an explanation from the ministry because the Ministry’s Permanent Secretary, Antoine Ruvebana was in a meeting in Arusha while the minister’s phone was switched off.
Transport fares increased countrywide the last time pump prices increased. Rtd Col. Dodo Twahirwa, the Chairman of Rwanda Commuter Taxi Drivers Association (Atraco) could not reveal whether there is a likelihood of transport fares rising.