Fuel pump prices have dropped, bringing a sigh of relief among customers who hope this will eventually bring down the cost of doing business.
The ministry of Trade and industry has announced a drop in fuel prices to Rwf 826 up from Rwf 874 effective 1st February, 2016.
In a statement from the Ministry, the drop is as a result of falling crude oil prices on international market since December, 2015 and January this year.
“The final price of both petrol and Diesel in Kigali should not exceed Rwf 826 and this will take effect on the first day of February,” said Francois Kanimba, Minister of Trade and industry in a statement on Friday.
The fall this year follows yet another drop in December, 2015 to Rwf 874 from Rwf 888 in October,2015 which also dropped from Rwf 935 in July after rising from Rwf 840 in May, 2015. The continued fall, experts say will help the country to further cushion inflation that reduced to 4.5 percent in December, 2015 down from 4.8 percent witnessed in November, 2015 after a fall in food inflation.
“When we hear a fall in fuel prices we expect other prices of goods to reduce because they always tell us fuel is a major cause of an increase in prices of goods,” said Giovani Higiro, a resident of Kigali.
On the announcement of the fall in pump prices, Consumers expected a reduction in prices most goods as well as transport fares.
But the ministry says that the reduction is not likely to create a bigger impact in prices on the consumer side since International prices affect local pump prices by 34 percent.