Pump prices for oil products will, effective today, drop to Rwf845, down from Rwf895 per litre, the Ministry of Trade and Industry said in a statement released yesterday.
Prices for both petrol and diesel will be reviewed further in May, the statement added.
The new prices follow continuous reduction in oil prices on the global market since last year. Fuel prices began plummeting in March 2014 but the latest pump price was effective on December 26, 2014.
Before March last year, a litre of fuel was at Rwf1,030. However, there is no hope for significant reduction in transport fares, according to Rwanda Utilities Regulatory Authority (Rura), since transport fare depends on many factors.
Emmanuel Asaba Katabarwa, director of road transport at Rura, said following the New Year’s Day drop in oil prices in the country, a 2 per cent reduction on transport fares was effected following a 12 per cent drop in oil price.
However, passengers complain that the reduction in fare which was announced last month was very insignificant.
“Oil prices account for only 24 per cent of determinants of transport fare with about 76 per cent down to other factors like spare parts and paying workers,” he said.