The Rwanda Utility Regulatory Authority (RURA) has announced revised fuel prices for the next two months to avoid inflation.
The new fuel prices to take effect on Sunday, December 19 stand at Rwf1,225 per litre for gasoline from the current Rwf1,143 per liter.
Moreover, the prices stand at Rwf1,140 per litre of diesel from the current Rwf1,054.
The communique signed by RURA Director General Dr. Ernest Nsabimana reads that the new prices are applicable till February 22, 2022 and will take into consideration the eventual changes of fuel prices on the international market.
In a communique released yesterday, RURA said that government has since May stabilized fuel prices by foregoing import taxes on fuel products to avoid a higher increase.
Specifically for this period, government of Rwanda avoided the price increase of Rwf137/litre for gasoline and Rwf167 for diesel and therefore allowed the price increase of Rwf82/L and Rwf96/L respectively for gasoline and diesel, said a RURA statement signed by Nsabimana.
This decision was taken in order to avoid negative consequences of exaggerated fuel prices that would cause the generalized price increase (inflation) and therefore decelerate the speed on which our economy is recovering from the impact of the COVID-19 outbreak.
Previous review of fuel prices was made in May this year.
The National Bank of Rwanda (BNR) has maintained the Central Bank Rate (CBR) at 4.5 percent with confidence in a progressive economic recovery that will largely be driven by stability in the financial sector.
The Monetary Policy Committee (MPC) meeting held on 10th November 2021 reviewed the impact of its previous decisions and assessed recent economic developments at the global and domestic level, as well as the outlook.
The MPC showed that despite COVID-19 pandemic which slapped economic activities into a slump, the real GDP grew from -12.4% in 2020 quarter 2 (Q2) to 20.6% this year in the same period year- on- year.
“The continued recovery of Rwanda’s economy is supported by sizable fiscal and monetary policy measures/ stimulus (Economic recovery funds and external borrowing), good agricultural performance with good harvest in 2021 season B and continued vaccine rollout,” the report said.
BNR expects the economy to continue to grow in the third quarter by 10.3% driven by industry and services.