Traders Warned Against Unfair Price Hikes

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Traders Warned Against Unfair Price Hikes
Traders Warned Against Unfair Price Hikes

Africa-Press – Rwanda. Officials have warned traders across the country, cautioning them against using the recent surge in fuel prices as an excuse to increase the cost of goods and services.

Claudine Uwamariya, the Acting Director of the Competition and Consumer Protection Unit at the Rwanda Inspectorate, Competition and Consumer Protection Authority (RICA), said joint inspections with the Ministry of Trade and Industry (MINICOM) are underway to ensure traders do not take advantage of fuel price increases.

She explained that essential commodities under monitoring include rice, maize flour, cooking oil, and sugar, especially imported ones.

“It would be unjustifiable if a trader increases the price of rice from Rwf2,000 to Rwf2,500 per kilo, yet the cost at which they acquired the product has not changed,” Uwamariya told The New Times.

She added that RICA inspectors assess whether price increases reflect actual changes along the supply chain and whether profit margins remain reasonable.

“For example, if a trader’s profit margin per kilogram of rice was Rwf200 and it rises to Rwf500 without justification, that would be considered unfair pricing,” she said.

She explained that the inspections are also verifying whether prices displayed on products match those on invoices and what consumers are actually charged.

“In some cases, consumers might be given issued invoices reflecting lower prices than what they actually paid,” she noted.

Uwamariya urged consumers to always demand Electronic Billing Machine (EBM) invoices, saying they are essential for reporting cases of overcharging.

“They should ensure they get EBM invoices. This helps them report cases where they are overcharged,” she said.

She added that penalties will be imposed on traders found violating the 2026 Competition and Consumer Protection Law, which determines that enterprises found engaging in unfair, deceptive, fraudulent, or unconscionable commercial practices are fined based on their annual turnover in the preceding financial year.

Businesses with a turnover below Rwf2 million face a fine of Rwf30,000. Those with turnover between Rwf2 million and Rwf20 million are fined between Rwf50,000 and Rwf100,000.

Those with a turnover ranging between Rwf20 million and Rwf1 billion face penalties ranging from Rwf200,000 to Rwf300,000. Firms with a turnover exceeding Rwf1 billion are subject to a fixed fine of Rwf500,000.

Fuel prices

The warning comes after a sharp rise in fuel prices announced by the Rwanda Utilities Regulatory Authority (RURA). Within two weeks, petrol prices increased by Rwf635 per litre, now retailing at Rwf2,938, while diesel remains at Rwf2,205 per litre.

RURA attributed the increase to shifts in global markets, particularly tensions in the Middle East. It maintained the price of diesel unchanged to cushion public transport operators, freight services, and the wider economy.

However, compliance remains a concern. On April 17, RURA said it had fined nearly 100 public transport operators for overcharging passengers.

Across Kigali, traders report rising prices of food and basic commodities linked to higher transport costs. In the Gisimenti area, fruit vendors said mangoes imported from Kenya, previously sold at Rwf600-Rwf700 per piece, now cost between Rwf900 and Rwf1,000.

In Nyabugogo market, prices of local produce have remained relatively stable, with potatoes selling at Rwf600-700 per kilogram, which traders attribute to the ongoing harvesting season.

The Minister of Trade and Industry Prudence Sebahizi told The New Times that the government is monitoring the impact of fuel price increases and may introduce targeted subsidies for the most affected sectors.

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