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Government says diesel price hike will not affect transport or market prices

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The government has said the recent increase in diesel prices will not lead to higher public transport fares or rising prices of goods on the market, despite a sharp adjustment announced by the Rwanda Utilities Regulatory Authority (RURA).

Under the new fuel pricing structure, diesel rose by Rwf722 per litre, from Rwf2,205 to Rwf2,927, while petrol remained unchanged at Rwf2,938 per litre.

State Minister in the Ministry of Infrastructure Jean de Dieu Uwihanganye said the government continues to subsidize diesel to keep local prices below international market levels, noting that without intervention the price could have risen to around Rwf3,500 per litre.

He said the current price remains significantly lower than global benchmarks, stressing that the adjustment reflects broader international market trends.

“Even with the new price, it is still far below the international market price. Diesel prices have increased significantly compared to where we were. If you look at global prices, they could have gone up by at least 60 percent,” he said.

Uwihanganye said there is no expectation that transport fares will increase, citing ongoing government subsidies on diesel and public transport services as a stabilizing factor.

“Although diesel prices have increased and public transport vehicles run on diesel, transport fares will not increase across the country. This is because the government puts effort into subsidizing diesel and public transport,” he said.

He attributed the price adjustment to global market pressures, including the impact of geopolitical tensions in the Middle East, while reiterating that the government is committed to ensuring a stable supply of petroleum products in the country.

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