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Minister Sebahizi defends diesel price hike, cites subsidy pressure

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Minister of Trade and Industry Prudence Sebahizi has defended the recent increase in diesel prices, saying the adjustment was necessary due to mounting pressure from fuel subsidies that had become increasingly difficult for the government to sustain.

His remarks follow the latest fuel price review by the Rwanda Utilities Regulatory Authority (RURA), which set diesel at RWF 2,927 per litre, while petrol remained unchanged at RWF 2,938 per litre.

Speaking to Mama Urwagasabo, Sebahizi said global geopolitical tensions, particularly in the Middle East, have continued to disrupt oil markets, pushing up import costs for fuel-dependent countries like Rwanda.

He explained that the government has been implementing a range of mitigation measures, including monitoring essential imports, improving strategic fuel reserves, and strengthening coordination with trade partners to reduce supply chain risks.

On the fuel price adjustment, the minister said petrol prices were maintained, while diesel was increased due to the rising cost of subsidies, which had placed significant strain on public finances.

He noted that the government had previously managed to stabilise diesel prices at RWF 2,205 per litre for about two months through subsidies, but sustaining that intervention proved increasingly difficult.

“The subsidy helped keep diesel at RWF 2,205 per litre for two months, but it became too costly to maintain. We have now reached a point where we share the diesel cost with Rwandans,” he said.

In a separate briefing, the Prime Minister indicated that fuel prices are still being subsidised at about 18.26%, adding that without government support, diesel would currently cost around RWF 3,581 per litre instead of the current RWF 2,927.

Official figures show that since March 2026, diesel prices have increased by 50.3%, rising from RWF 1,948 to RWF 2,927 per litre, while petrol increased by 47.7% over the same period.

The government maintains that ongoing interventions aim to balance fiscal sustainability with protecting consumers from sharp fuel price shocks amid continued global market volatility.

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