Fuel prices across the country have increased from Rwf756 to Rwf795 per litre for either diesel or petrol—representing a 5 percent increase. The Business Times survey indicates that filling stations in Kigali have increased by Rwf39 since Monday.
The Permanent Secretary in the Ministry of Trade and Industry (MINICOM), Antoine Ruvebana explained that the increase is due to the rise of oil prices on the international market.
Ruvebana said that, “PMS (Premium Motor Spirit) and diesel prices on the international market have increased owing to the global financial crisis.”
“The pipeline charges from Mombasa, Kenya also increased by $11 (Rwf6,228) per cubic metre (m3) from $40 (Rwf22,648) per cubic metre (m3) towards April,” he added.
According to records, it currently costs $51 (Rwf28,310) to transport a cubic metre (m3) of fuel from Mombasa to Nairobi and Eldoret. Since 1000 litres are in a cubic metre, a litre of fuel is transported by pipeline at Rwf28.31 from Mombasa.
Ruvebana also explained that owing to external factors, MINICOM and fuel dealers met to decide a better price considering that last month’s oil prices increased.
Just of recent, global oil prices have been reported to rally above $67 (Rwf36,224) per barrel for the first time since November 2008.
It is however speculated that the global price of a barrel could reach $80 (Rwf45,044) or $90(Rwf50,674) by early next year.
“Our calculation had brought petrol to Rwf810 and Rwf780 for diesel. However, we decide to go for the average price (Rwf795) to avoid one petroleum product being expensive than the other,” Ruvebana said on Tuesday. He added that there won’t be any increase in subsidies for petroleum products.
“It is a government policy this year not to increase or decrease the fuel subsidies. Taxes on petroleum products will also not change,” he added.
This will be the first time, this year, petrol prices have increased in Rwanda. The last time fuel prices changed was in November 2008 when they fell by 13.6 percent.
The pump prices for petrol and diesel averagely reduced from Rwf875 to Rwf756 per litre, which brought about a reduction in transport fares countrywide depending on the distance.