oil and gas

Rwanda subsidizes fuel to contain price surge

June 10, 2022

Rwanda has announced new fuel prices that take effect immediately. According to the Minister of Infrastructure Ernest Nsabimana, diesel cost rose by 9.9 per cent or $0.13 a litre, while that of petrol rose by 7.4 per cent or $0.097a litre.

Nsabimana observed that though there was an increase in fuel costs to be incurred by consumers, the Government had provided significant financial support to contain their surge.

In the next the two months, the government is expected to subsidize fuel costs with over 13.4 million U.S. dollars; the support he said will help prevent transport costs from going too high.

Such subsidy is in the form of tax that the Government will waive on fuel consumption.

Without the subsidy, prices would have risen to 1 U.S. dollar for petrol and 1.7 for diesel.

“If a litre of petrol or diesel increases by Rwf300,(30 U.S. cents) it can have a huge impact on the daily lives of people such as the transport cost of those who go to bring potatoes from Musanze [District], sand, cement from Bugarama [in Rusizi District], milk from Mutara (Nyagatare District), or vegetables,” Nsabimana said.

Jean Marie Vianney Gatabazi, Minister of Local Government said that the Government’s subsidy on fuel is important in terms of lowering the cost of the needed goods and services, such as foodstuff and transport.

cgtn



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