Rwanda Utilities Regulatory Authority (RURA) announced on Friday that petroleum pump prices for diesel and petrol in Rwanda had reached record-high levels despite government subsidies to cushion consumers.

The new pump prices, which become effective from June 10 to July 31, indicate that the maximum retail price for gasoline increased to 1,460 Rwandan francs (about 1.40 U.S. dollars) per litre and diesel increased to 1,503 Rwandan francs per litre, said RURA in the statement.

“Fuel pump prices have been revised based on adjustments in the international market,” said the statement.

Since May 2021, prices have been stabilised as a result of the decision by the government of Rwanda to forego some taxes on imports of select petroleum products, it added.

Previously, a litre of gasoline cost 1,359 Rwandan francs per litre while diesel was 1,368 Rwandan francs per litre.

According to RURA, the government maintained a price increase of 101 Rwandan francs for gasoline per litre and 135 Rwandan francs per litre for diesel instead of 316 Rwandan francs per litre for gasoline and 350 Rwandan francs for diesel per litre.

The decision was taken to mitigate the adverse impact of high fuel prices on general price increases which would negatively affect the speed of Rwanda’s economic recovery from the COVID-19 pandemic, said RURA.

Teddy Kaberuka, a Rwandan economist, told Xinhua in a telephone interview that “leaders and policymakers should look into this issue and come up with tangible solutions that protect consumers from the adverse effects of volatile fuel pump prices.’’

The soaring of fuel prices is a global challenge. This has greatly affected most economies across the globe including Rwanda, Mr Kaberuka added. 

(Xinhua/NAN)