TOP STORY: Fuel prices fall by 13.6 percent

The decrease of 13.6 percent comes just a month since the last drop off of 4.8 percent was announced last month. Pump prices for petrol and diesel fall from Rwf924 to Rwf880 for petrol and Rwf870 for diesel Government has announced a countrywide flat reduction of fuel prices by 13.6 per cent. This means that pump prices for both petrol and diesel have averagely reduced from Rwf875 to Rwf756 per litre. Monique Nsanzabaganwa, the Minister of Trade and Industry said yesterday that the decline is due to the declining price of oil on the international market. She said the international prices of oil have greatly depreciated in the last few months, “In this regard, the prices of fuel have (also) lowered.” Nsanzabaganwa said, “There are a number of factors causing instabilities of oil price such as inflation.” In the international market, reports indicate oil prices are continuing recent falls to below $60. The prices are dragged down by the expectation that turmoil in the global financial sector will lead to a wider economic slump. Accordingly, pump prices for petrol and diesel this week will reduce from Rwf880 and Rwf870 respectively to Rwf756. Nsanzabaganwa however said that upcountry prices may not fall under the same range because there are more costs such as transport attached. The decrease of 13.6 percent comes just a month since the last drop off of 4.8 percent was announced last month. Pump prices for petrol and diesel fall from Rwf924 to Rwf880 for petrol and Rwf870 for diesel. Last month’s decrease was also attributed to the depreciating prices of oil on the international market. The trade minister also revealed that the new price are regionally very competitive yet Rwanda is landlocked and is yet to construct the Eldoret-Kigali fuel pipeline, which is expected to further reduce fuel transportation costs. Alex Rutagwenda, the Director of Petroleum in the Ministry of Trade revealed that currently subsidies on petrol and diesel have also reduced. Petrol subsidies have reduced from 66 percent to 50 percent while diesel subsidies have reduced from 80 percent to 77 percent. It is said that if not highly subsidized, diesel pump prices could shoot higher, to about Rwf1,223 on petrol and Rwf1204 on diesel, thereby forcing prices of essential commodities to go high. This according to government officials would affect the entire economy. Despite kerosene being consumable by peasants, the petroleum product is not subsidised because of its low consumption rate and tax rate of 5 percent. However, kerosene prices are also expected to take the same pursuit of depreciation from Rwf788. Ends

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TOP STORY: Fuel prices fall by 13.6 percent