Minister Says Diesel Price Hike Won’t Drive Up Commodity Costs

Sebahizi said diesel prices rose by only 5 percent per liter, describing the increase as moderate compared to what could have occurred without government intervention. He said the government absorbed a significant portion of the cost to prevent it from affecting food and transport prices.

“The link between fuel prices and commodity prices comes mainly from transportation, since most vehicles use diesel,” Sebahizi said. “The government made major sacrifices to ensure prices remain stable. Diesel went up by only 5 percent, so we don’t expect any noticeable rise in food prices.”

He explained that the 5 percent adjustment was too small to cause price shifts in the market.

“When you calculate a 5 percent increase in diesel against the total cost of transporting goods, the effect is minimal,” he said. “It’s not enough to push up overall commodity prices.”

Sebahizi said the government has adopted several measures to protect consumers from fluctuations in international fuel prices. Rwanda, he said, is expanding its fuel storage capacity to stock up when global prices fall, helping to stabilize local supply and pricing.

He added that the country is working with regional partners to cut transport costs.

“Goods imported through the Northern Corridor via Mombasa are usually more expensive than those through the Central Corridor,” he said. “We are in discussions with Kenya to allow Rwanda to use the Eldoret fuel pipeline, which would make fuel deliveries cheaper and more efficient.”

To further limit dependence on imported fuel, Sebahizi said Rwanda is promoting electric vehicles and encouraging domestic production.

“We’re urging people to use electric cars where possible,” he said. “Increasing local production helps protect our currency, reduce imports, and boost what we make at home.”

He called on traders to act responsibly and avoid unjustified price increases, urging consumers to report any abuse to authorities to ensure fair pricing across markets.