Rwanda Cuts Fuel Prices by Rwf 65

Rwanda on Wednesday announced a surprising cut on fuel prices by Rwf65 ($0.09), to Rwf895 per litre of both petrol, diesel and kerosene, down from current Rwf960 per litre.

In a communique issued by Trade and Industry Minister, Francois Kanimba, the new prices will be effective on Boxing Day (26/12/2014).

Last month, government announced cuts in the prices of fuels by Rwf40 ($0.06) to $1.41 per litre.

Economists say the consecutive decrease in fuel prices is mainly due to continuous price fluctuations on the World market.

Rwandan transporters, however, say they are afraid they might face a harsh reception at service stations due to festive seasons.

“We are worried service stations will not meet these new rates since demand is high ahead of festive seasons,” said Innocent Munyurangabo, a Kigali city transporter.

According to Minister Kanimba, reduction on fuel prices are a result of a similar reduction on the World market last month.

The Minister however added that the new prices will be reviewed at the end of January next year, as projected by a continued reduction this month.

Rwanda, a landlocked country, depends on the Kenyan port of Mombasa and the Tanzanian port of Dar-es Salaam for its oil and related product imports.

Olivier Blanchard, the IMF’s chief economist said Monday recent drop in oil prices should persist, helping to boost global economic activity.

He said the price decline owed to supply factors, including an unexpectedly quick return to Libya’s oil production and Iraq’s steady supply.

The international crude oil prices have fallen to $69.08 per barrel.

By: Dan Ngabonziza