Rwanda Utilities Regulatory Agency (RURA) is set to announce new transport fares after government deducted fuel prices, by 60 Rwandan francs in a move that is also likely to prompt a decline in general consumer prices.
Fuel pump prices dropped to 940 francs from 1,000 francs in line with the treasury’s proposal contained in the budget for the fiscal year 2011/12.
While presenting the budget in June 2011, Rwanda’s Finance Minister John Rwangombwa, slashed fuel taxes by 100 francs per litre for both petrol and gasoil. RURA, the regulator of the transport industry said, they are in the process of reviewing transport fares.
“We are reviewing the fares along with transport companies and we are doing (this) very fast as we expect to announce the findings very soon,” RURA’s Director General, Regis Gatarayiha said.
The Coordinator of Petroleum Special Unit in the Ministry of Trade and Industry, Robert Opirah said that fuel cut was the last in a series of government’s move to reduce then prices of both petrol and diesel by Rwf100 per litre.
With sound fiscal measures and the central bank’s prudent monetary policy, the country is likely to maintain a relatively low inflation rate compared to its EAC counterparts. Rwanda is also expected to maintain a healthy agriculture output this year, which will help ease food prices.
Even though Rwanda is a land locked country, it normally maintains low fuel prices compared to other neighbouring countries to enable its citizens access home needs easily.