The government announced a reduction in fuel prices in line with the 2011/12 budget proposal, where levies on fuel imports will drop by Rwf100 per litre by the end of this financial year.
Prices of both petrol and diesel reduced to Rwf1,025 from 1,067, effective Friday July 1, 2011, the Ministry of Trade and Industry said in a statement.
The move is aimed at offsetting the global economic situation characterised by rising oil and food prices.
While announcing the new prices in a statement sent to Business Times, the Minister of Trade and Industry, Francois Kanimba, said reduction was made possible due to government’s decision to reduce taxes on fuel related products as one way of controlling inflation and prices of other commodities.
However, analysts still believe that the reduction of prices will not bring down the recent increase in transport costs.
But prices of food commodities and other essentials are expected to go down thus bringing down the recent rising inflation.