Minister of trade and industry speaks on the impact of diesel price increase
The Minister of Trade and Industry, Prudence Sebahizi, stated that although there has been a slight increase in diesel prices, it will not significantly affect the prices of goods, since the adjustment was only about 5% per liter.
He made the remarks on Friday, November 7, explaining that the government deliberately limited the increase to protect citizens from the burden of high fuel costs.
He said, “People often associate fuel price hikes with higher commodity prices because transportation largely depends on diesel-powered vehicles. However, the government made great efforts to keep the increase moderate—diesel went up by only 5%. That’s why we don’t expect major changes in food prices.”
He added that this 5% increase is too small to have a visible effect on goods. “If you calculate how much fuel is used to transport a ton of goods over a certain distance, you find that the increase is very minimal. While minor fluctuations may occur, they won’t be significant.”
Regarding the government’s strategies to stabilize food prices, Minister Sebahizi said expanding fuel storage capacity will help the country cope with global market fluctuations.
He explained, “Imported fuel takes about two months to reach Rwanda. When global prices drop, we need the ability to store larger quantities. That’s why we’re expanding our storage facilities.”
He also mentioned that Rwanda is in talks with Kenya to use the petroleum pipeline that extends to Eldoret, which would help lower fuel transport costs to Rwanda.
He said, “Currently, goods transported through Mombasa Port are more expensive than those shipped through the Central Corridor. We are discussing with the Kenyan government how to access the Eldoret pipeline so that fuel can reach Rwanda at a cheaper rate.”
The Minister further noted that promoting electric vehicles and boosting domestic production are also key priorities.
He stated, “We encourage people to adopt electric vehicles wherever possible. Increasing local production will help reduce imports and protect our national currency.”
Finally, Minister Sebahizi urged traders to avoid unjustified price increases and encouraged consumers to report any suspicious price changes so that authorities can carry out proper investigations.