Fuel prices may not rise despite increased charges

The Ministry of Trade and Industry (MINICOM) has said that the proposed increase of charges on fuel dealers  for road maintenance might not be reflected on the fuel pump prices.

The Ministry of Trade and Industry (MINICOM) has said that the proposed increase of charges on fuel dealers  for road maintenance might not be reflected on the fuel pump prices.

Government is planning to increase its road maintenance  charge   from Rwf40 to Rwf62.37 within the next three months.

Monique Nsanzabaganwa, the Minister of Trade and Industry said that government will analyse the situation before making the 50 percent increase on fuel charges  under the  Road Maintenance  Fund(RMF)

“We will look at the international oil price, subsidies among others before announcing the increase,” she explained recently in an interview with The Business Times.

Fuel dealers and experts had predicted that the new proposed charge on each litre of petrol and diesel could trigger further increases of fuel pump prices.

However, Nsanzabaganwa said “We are concerned about the welfare of citizens”, adding that fuel is sensitive product that may cause a rise in prices of other commodities.

The first 50 percent increase in fuel levy recently coupled with the international oil price has caused a rise in fuel prices from Rwf795to Rwf825.

According to the Ministry of Infrastructure, RMF which has an annual budget of Rwf10 billion has been in deficit because of the increasing unit cost for road maintenance.

It was therefore proposed and approved by Cabinet that there be an increase in fuel charges from about Rwf20 to Rwf62.37 per litre to bridge the deficit.

Linda Bihire, the Minister of Infrastructure said that the Rwf62 charge on every litre of either petrol or diesel will pose a rise in the RMF annual budget to Rwf16 billion.

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