The Rwandan government has increased petrol prices, pushing the cost to RWF2,938 (about Shs7,460) per litre, while keeping diesel unchanged in a move it says is aimed at cushioning key sectors of the economy.
The latest adjustment comes amid renewed volatility in global oil markets, with escalating tensions in the Middle East tightening supply expectations and driving up international fuel prices.
In recent days, uncertainty around key oil-producing regions has continued to exert upward pressure on pump prices across import-dependent economies.
For countries like Rwanda, which rely heavily on imported petroleum products, such global shocks quickly translate into higher local prices.
However, unlike fully liberalised markets, Rwanda operates a state-regulated pricing framework, where government agencies set and adjust fuel price caps to manage inflation and protect strategic sectors.
Under this system, the government directly intervenes in pricing decisions, allowing it to cushion critical areas of the economy—such as transport—rather than leaving prices entirely to market forces.
In a statement issued on April 16, the Rwanda Utilities Regulatory Authority (RURA) announced that effective April 17 at 6:00am, the maximum retail price for petrol will rise to about Shs7,460 per litre (from about Shs5,850 earlier this month).
Diesel will remain unchanged at about Shs5,600 per litre.
“These adjustments reflect prevailing international market trends and supply dynamics, as well as Government measures to mitigate the impact of global price surge,” RURA said.
The decision means petrol has recorded a steep increase within just two weeks, highlighting the pressure from global oil markets.
However, the regulator opted to hold diesel prices steady to protect transport and broader economic activity.
“As a result of targeted interventions, the price of diesel remains unchanged in order to maintain support of public transport of persons and goods, as well as overall economic activities,” the statement reads.
The latest review follows an earlier adjustment on April 4, when petrol was capped at about Shs5,850 per litre, while diesel remained at about Shs5,600 per litre.
That review also saw an increase in public transport fares to reflect rising operational costs.
No new fare changes were announced in the latest notice, despite the significant jump in petrol prices.
RURA has urged the public to adjust consumption habits to cope with the higher fuel costs.
“The public is encouraged to plan travel efficiently, prioritize the use of shared or public transport, and avoid unnecessary travel in order to manage fuel use,” the regulator said.
The authority added that it will continue monitoring global and regional petroleum markets to ensure “fair pricing, market stability, and reliable supply of petroleum nationwide.”
Tough times
Fuel prices across East Africa have risen sharply in recent weeks, driven by global supply disruptions and sustained increases in crude oil prices above $100 per barrel.
Despite the upward pressure, Uganda remains slightly cheaper at the pump compared to several of its regional peers, even though it is a landlocked country dependent on imported fuel through Kenya.
A regional comparison shows that petrol in Kenya averages about Shs5,871 per litre, with diesel at a similar rate.
In Uganda, petrol currently averages around Shs5,244 per litre, while diesel stands at about Shs5,085, although prices in parts of Kampala have reportedly risen to around Shs5,600.
Ethiopia remains significantly lower at about Shs3,363 for petrol and Shs3,848 for diesel, while Burundi averages around Shs4,959 for petrol and Shs4,874 for diesel.
The recent price increases across the region have largely been attributed to global supply shocks, particularly heightened geopolitical tensions in the Middle East since late February 2026.
These disruptions have affected oil production and shipping routes, including the Strait of Hormuz, a critical passage for global oil trade.
Increased freight and insurance costs have further pushed up fuel prices for importing countries.
Uganda’s relatively lower pump prices have been partly attributed to structural reforms in its fuel importation system.
In 2024, government implemented the Petroleum Supply (Amendment) Act, 2023, giving the Uganda National Oil Company sole responsibility for importing fuel.
This shift reduced reliance on Kenyan intermediaries who previously handled the bulk of Uganda’s fuel imports, a system that had been criticised for adding extra costs through middlemen margins.
Under the new arrangement, Uganda now sources fuel directly from international suppliers under long-term agreements while still relying on regional infrastructure for transport.