Could new fuel price changes affect public transport fares?

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Could new fuel price changes affect public transport fares?
Could new fuel price changes affect public transport fares?

Africa-Press – Rwanda. Following the recent rise in fuel prices, some public transporters have approached government authorities asking for a review of the current transport fare tariffs.

According to the changes announced by Rwanda Utilities Regulatory Authority (RURA) on Friday, November 5, the maximum retail price for Gasoline (Petrol) has been revised from Rwf1,862 per litre to Rwf1,989, while Diesel has increased from Rwf1,808 per litre to Rwf1,900.

Public transporters who spoke to The New Times hinted at the need to have a review of the tariffs. Kigali Bus Services (KBS) spokesperson Charles Ngarambe said the company has already approached the authorities and asked them about the possibility of raising the fares to match the rising fuel prices.

“The fuel price has risen by over 11 percent in the last two months, but the transport fare is still the same,” said Ngarambe. “We usually raise prices after being authorised by RURA to do. So, that’s why the company already addressed the issue and we believe that something will be done about it.”

The New Times also understands that some public transporters, particularly taxi-moto riders have raised their tariffs.

Alexandre Hategekimana, a taxi-motorcyclist in Kigali, said some of his colleagues have started to charge more. He said they used to charge Rwf2000 for the trip from Nyabugogo to Kabuga before the fuel prices were revised, but now some riders charge around Rwf2,500.

Pascal Muhizi, President of a motorcyclist cooperative in Kinyinya Sector of Gasabo District, also pointed to some of his colleagues who are overcharging due to the fuel price increase.

He noted that it is inappropriate until authorities have announced changes in fares.

Late last week, the government reassured the public that the fuel price adjustments would not lead to a rise in the prices of goods and services on the market.

The Minister of Trade and Industry, Prudence Sebahizi, said that the increase was moderate due to government subsidies aimed at cushioning consumers from the full impact of rising global fuel prices.

“The government intervened to ensure that the price adjustment remains minimal. While the global market conditions warranted a 6 percent rise, we limited it to 5 percent. Given this, we do not expect the prices of essential goods to increase,” Sebahizi said.

He added that the rise in fuel prices should not be used as an excuse for unjustified price increases in commodity prices.

“We encourage traders to calculate reasonably. The 5 percent change in fuel price has a negligible effect on overall commodity costs. Buyers should also report any sellers exploiting this adjustment,” he said.

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