Petroleum prices up in Rwanda, South Africa

car

Rwanda’s Ministry of Trade and Industry has announced new pump prices for petroleum products barely a month after the prices for both diesel and petrol were fixed at Rwf840 per litre.

The increases took effect July 1st and the same situation has been seen in Tanzania where the government announced that petrol will be vended at Tsh2, 198 per litre, Tsh2, 043 for diesel and Tsh1, 993 for kerosene- meaning a rise by 11 percent a litre.

The ministry said in a statement that diesel and petrol should not exceed Rwf935 per litre attributing the increase to a rise in international oil prices which had increase by 14 per cent since February.

The statement released on June 30, also explained that increment is meant to have the public contribute to construction of the national fuel reserves and road infrastructure.

Like in Tanzania where new high fuel prices were approved with the new budget to help the government generate funds for rural electrification and water projects, the 2015/16 Rwandan budget endorsed a tax on petroleum products by Rwf52.6 increase per litre, as mentioned the government intends to use the money on road construction among other things.

Some motorists have said that the increase on fuel prices will affect business in Rwanda and urged government to reduce the prices and taxes.

“When we pay more at the pump, we will charge more for our services and our clients will charge more for their services as well,” Felix Nsabimana, truck driver told this website

These hikes also come at a time when vehicle traffic in Rwanda’s capital Kigali has increased due to the influx well-to-do Burundian refugees who have fled to Rwanda with their vehicles, thus contributing to high demand and prices for petrol.

South Africa has also raised petrol prices by as much as 44 cents a litre but the increase in petroleum prices has been attributed to the weak rand against the dollar.

The department of energy said in a statement that because the rand is weakening against the dollar, for the 30 days that ended on June 26 – the rand lost 40 cents against the dollar.

Internationally, demand for fuel has also been pushed by the driving season in Europe, where consumer demand for petrol rises in the summer months, as well as pre-Ramadan buying in the Asian market, the department said.