Rwanda raises fuel prices, blames cost of oil on global markets

Fri Oct 5, 2012 6:47pm GMT

KIGALI Oct 5 (Reuters) - Rwanda has increased fuel prices after global crude prices rose, the country's ministry of trade and industry said on Friday.

Rwanda had lowered fuel prices in August, a move which officials said at the time would help bring down inflation.

However, inflation rose in August from a month earlier, due mainly to rising food prices, the central African country said.

The ministry said that from Saturday prices for diesel and petrol will be set at a maximum of 1,050 Rwandan francs ($1.7) per litre, up from 970 francs.�

Rwanda's ministry of trade and industry said the increase is "mainly due to the high oil prices escalation on the international market, where petroleum products prices have increase on average by 10 percent since August 2012."

Rwanda escaped the worst of soaring inflation and weakening currencies last year that hit its larger neighbours in east Africa such as Uganda and Kenya, because strong farm output and the removal of fuel import duties kept food prices down. ($1 = 609.852 Rwandan francs) (Reporting By Jenny Clover; Writing by Drazen Jorgic; Editing by James Macharia)

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