Rise in pump prices likely to trigger increase in prices

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Rise in pump prices likely to trigger increase in prices

Effective 1st July, the government announced pump prices will increase to Rwf 935 per litre an increment of Rwf 95.

This comes just a month when pump prices shoot up in May, 2015 to Rwf 840 from Rwf 810 at the beginning of the year.

The rise according to Ministry of trade and industry which regulated fuel price so in the market said the    increase follows recent increase in crude oil prices on an international market.

“The rise in fuel prices is as a result of fuel prices on an international market” Francois Kanimba, Minister of trade and industry announced.

This according to experts pump prices are likely to trigger a rise in prices of several commodities including transport, considering the upward trend fuel prices are taking.

Moreover, in the last two months, food prices shoot up at least ¾ by price, forcing consumers to dig deep into their pockets to buy their household food basket.

“It is not something to sit and watch, I think different stakeholders should be looking at how they can stabilize prices in the market, so that we don’t witness a rise in inflationary levels,” said Job Opar, a consumer rights and protection expert.

Fuel prices, play a key role in the rise and fall of prices of different commodities on the market which are used determine the inflation of the country and as Central Banks had projected, rise in fuel prices would increase inflationary levels.

“Despite the low inflation risks of inflation outlook may include developments in the international commodity prices,” said John Rwangombwa, Governor of the Central bank.

The country has been enjoying relative inflation in the first quarter of the year standing at 2.2 percent by May this year after a slight increase from 0.9 percent in April, 2015.

Fuel prices dropped by Rwf 40 to Rwf 960 in November and later to Rwf 895 in December 2014 from Rwf 1000, which had recorded a high in prices for several in the year for several month in 2014.

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About the author

Olive Ndaka is the Junior Editor for RwandaEye. An investor and young entrepreneur, she is a quick learner and has contributed many articles for RwandaEye in Kinyarwanda.

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