Gov't Announces Hike In Pump Prices
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- 08 Aug 2022
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The Government of Rwanda has announced a hike in fuel prices, the change yet again reflecting a sharp increase which is attributed to global disruptions. The
The price of petrol (premium) jumped from Rwf1,460 to Rwf1,609 while a litre of diesel jumped from Rwf1,503 to Rwf1, 607 in the changes announced Sunday by the Minister of Infrastructure, Dr. Ernest Nsabimana.
Every two months, the government revises fuel prices. Dr. Nsabimana said that nothing has changed much on the issues that the global fuel crisis, particularly the Russia-Ukraine conflict which exacerbated an already fragile situation left behind by the Covid-19 pandemic.
Dr. Nsabimana said that fuel prices could have considerably increased if the government had not put in an incentive of Rwf10bn to ensure that the changes don’t have a bearing on the cost of living of the citizens.
“The main reason for the hike is the conflict between Russia and Ukraine which has disrupted global oil markets and prices. From February when the war started, oil prices have increased by two-fold. In February, a barrel of crude oil was at $0.57 and by the end of July, it had hit $0.97, which goes to show that prices have been on an upward trend since February and even before that during the Covid-19 pandemic,”
He explained that for oil to be shipped from the source to Rwanda, it takes about two months on the way and in recent years the cost of freight increased considerably due to global market disruptions, all of which play into the pump prices. Read More…
