Maintenance fund spurs fuel prices

KIGALI - The new levy on fuel has been blamed for the hike in fuel pump prices that have increased by Rwf 30 to Rwf825 from Rwf795. Pump prices for petrol and diesel have increased for the second time in a spell of one month. According to the Ministry of Trade and Industry (MINICOM), the latest increase is due to the government’s decision to have a fuel levy for the Road Maintenance Fund (RMF). Government decided to charge at least Rwf20 per litre of both petrol and diesel for the fund, explained Antoine Ruvebana, the Permanent Secretary in MINICOM. “Our roads were being damaged without any sustainable fund,” Ruvebana said during an interview. The fund engineered by the Ministry of Infrastructure under its new Road Master Plan will contribute towards construction and maintenance of roads. Though the Rwf20 fuel charge does not correspond with the price increase of Rwf30, Ruvebana also attributed the rise to oil prices on the international market. The last time pump prices increased was early last month, when a litre went for Rwf795 from Rwf756, and the increase has been attributed to international prices and pipeline charges from Mombasa. The global oil prices increased above $67 (Rwf36,224) per barrel while pipeline charges from Mombasa, Kenya increased to $51 (Rwf28, 310) from $40 (Rwf22, 648) per cubic metre. There are 1000 litres in a cubic metre. Dealers declined to give any information on the fuel prices saying it is the government’s duty to comment. However, the increase is expected to propel public transport fares high countrywide since transport operators are reported to be facing hard times. Colonel (Rtd) Ludovic Twahirwa (Dodo), the Chairperson of Commuter Transport Operators’ Association (Atraco) was reported to have said recently: “Operators are enduring hard times as spare parts such as tyres are costly and pump prices have gone up.” Currently, negotiations are on between transporters and the Rwanda Utilities Regulatory Agency (RURA) to see how transport fares can be increased to meet the demands of the operators. Ends

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Maintenance fund spurs fuel prices