Rwanda Utilities Regulatory Authority (RURA) has revised fuel prices upwards. The price of petroleum has increased from Rwf969 to Rwf993 per litre while diesel now costs Rwf954 per litre up from Rwf935.

RURA said the changes are a response to volatility in the international oil market.

"The new prices are a reflection of the general increase of oil prices in international market and will not affect public transport,” said Patrick Nyirishema,” the RURA boss.

The U.S. energy information administration (EIA) recently projected crude oil prices to average about $51 per barrel in 2017 and $52/b in 2018.

However, this volatility won’t be as bad as in 2016.

To ensure stability in fuel supply, Rwanda plans to increase its fuel storage capacity from the current 74 million litres to 150 million litres by 2018.

Last year, government inaugurated a new fuel depot worth $22 million as part of the plan to meet its oil needs.

Statistics indicate that Rwanda’s annual fuel demand is growing at 10.1 per cent and currently 230 million litres of fuel is consumed annually with heavy fuel generated power galloping the biggest percentage of imported fuel.

editorial@newtimes.co.rw