Fuel prices to go up despite assurances

KIGALI - Despite recent assurances from government, pump prices for petroleum products are likely to go up at by least Rwf 20 per litre by the end of this month. A litre of both Diesel and Petrol is expected to increase from Rwf 825 to at least Rwf 845, but could even increase further if the world oil market does not stabilise. In an interview with The New Times, the Permanent Secretary in the Ministry of Trade and Industry, Antoine Ruvebana, said that due to increasing world prices, pump prices are expected to maintain a Rwf 10 increment per litre to meet the increased cost of importing petroleum products, while a further Rwf10 will go towards the Road Maintenance Fund (RMF). “The plan, as approved by cabinet, was to increase the amount deducted on each litre of fuel for the Fund from Rwf20 (Diesel) and Rwf24 (Petrol) to Rwf 60 and this would be added gradually, with an increase of Rwf 20 monthly,” Ruvebana said The recent increase saw pump prices jump from Rwf 795 to 825; the extra Rwf 10 was attributed to increasing world prices. Ruvebana said that pump prices will shoot up to at least Rwf 845, but could further hike if world prices don’t stabilise. “The cost of road maintenance has gone up, government has done its part and motorists who are the major beneficiaries will have to contribute,” Ruvebana said. In a separate interview, the head of the association of petroleum traders in Rwanda, Victor Nduwumwami, mainly blamed increased taxes levied on oil products and transportation costs as the major factors for the increase of pump prices. “I can’t talk about the pump prices because it’s MINECOFIN and MINICOM which determine the prices, but all I can tell you is that transportation costs and high taxes are some of the factors leading to the increment,” Nduwumwami said, who is also the proprietor of Source Oil. He added that world prices per barrel have shot up in recent days prompting traders to increase pump prices. In a recent interview with The Business Times, the Trade and Industry Minister, Monique Nsanzabaganwa, said that the trend won’t continue, assuring consumers that pump prices will stabilise. “We will look at the international oil price, subsidies among others before announcing the increase,” she is quoted as saying then. Despite, the assurances, motorists are set to feel the pinch in a bid to contribute to the RMF’s annual budget worth Rwf16 billion, according to the infrastructure Minister Linda Bihire. Ends

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Fuel prices to go up despite assurances