November 26, 2021

IMF Wants Government Fuel Subsidies Removed

Trustworthy and indepth news stories are more important now than ever.
Support our newsroom by MAKING A CONTRIBUTION HERE
Without the government intervention, you would be buying fuel at much higher rate

The International Monetary Fund (IMF) has called for “phasing-off” of government subsidies that are keeping fuel pump prices lower.

In early October, government through the Rwanda Utilities and Regulatory Authority announced it introduced subsidies that have maintained fuel rates at a much lower rate.

Today, a litre of diesel costs Rwf 1,054, while petrol goes for Rwf 1,143.

Without the government backing, drivers would be buying the same litre at Rwf1,134 for diesel and Rwf1,134 for petrol.

This would automatically impact on the transport costs, thereby increasing prices of goods in shops. It would have been the ordinary consumer facing the pain, yet already, more people are facing tough economic times.

Now, the IMF says that as part of measures to put a curb on the country’s growing debt, which is projected to rise to 75 percent of GDP in 2021, the fuel subsidy has to be removed.

The IMF writes in its November 15 statement on Rwanda: “As a result of the extraordinary policy measures to address the COVID-19 impact, public debt is projected to rise to 75 percent of GDP in 2021.”

“While Rwanda’s risk of debt distress is expected to remain moderate, risks have heightened. This calls for fiscal consolidation efforts to start in earnest buttressed by the phasing-off of recently introduced measures (the reduction in fuel levy and tax exemptions) along with credible domestic revenue mobilization and spending rationalization measures.”

Government said the subsidies were brought in to control inflation.

We can't do quality journalism without your support

Perhaps it goes without saying — but producing quality journalism isn't cheap. At a time when newsroom resources and revenue are declining, The Chronicles remains committed to "Serving Your Right To Know The Truth". Stand with us as we document Rwanda's remarkable journey for you and the future generation. Do you value our journalism? We can't do it without you. Show us with your support by CONTRIBUTING HERE.
Email your news TIPS to or WhatsApp +250788351327.
You can also find us on Signal


  1. I think this is one of the most vital information for
    me. And i’m glad reading your article. But should remark on some general things, The
    web site style is great, the articles is really excellent : D.
    Good job, cheers

  2. each time i used to read smaller content which also clear their motive, and that
    is also happening with this paragraph which I
    am reading at this time.

  3. This is really interesting, You’re a very skilled blogger.
    I’ve joined your rss feed and look forward to seeking more
    of your magnificent post. Also, I have shared your site in my social networks!

  4. Hi there, I discovered your web site by way of Google even as searching for a related topic, your website got here up, it appears to be like good.
    I have bookmarked it in my google bookmarks.
    Hello there, just become aware of your blog through Google, and found that it is really informative.

    I am gonna be careful for brussels. I’ll appreciate in the event you continue this in future.
    Numerous other folks might be benefited from your writing.


  5. Useful information. Fortunate me I found your site by accident, and I’m
    surprised why this twist of fate did not came about earlier!
    I bookmarked it.

  6. Greetings I am so happy I found your site, I really found you by accident, while I was
    researching on Askjeeve for something else, Anyways I am here
    now and would just like to say thanks a lot for a incredible post
    and a all round exciting blog (I also love the theme/design), I don’t have time
    to browse it all at the moment but I have book-marked it and also added your RSS feeds, so when I have time
    I will be back to read much more, Please do keep up the awesome work.

  7. I know this if off topic but I’m looking into starting my own weblog
    and was curious what all is needed to get
    setup? I’m assuming having a blog like yours would cost a pretty penny?

    I’m not very web smart so I’m not 100% certain. Any tips or advice
    would be greatly appreciated. Thanks

  8. Hi, I do believe this is a great web site.

    I stumbledupon it 😉 I’m going to revisit once again since i
    have saved as a favorite it. Money and freedom is the best way
    to change, may you be rich and continue to help others.

  9. Oh my goodness! Amazing article dude! Thank you so much, However I am going through issues
    with your RSS. I don’t know why I cannot subscribe to
    it. Is there anybody getting similar RSS issues? Anybody who knows
    the answer will you kindly respond? Thanx!!

  10. Simply desire to say your article is as amazing.
    The clarity for your publish is just spectacular and that
    i can think you are knowledgeable in this subject. Fine together
    with your permission allow me to snatch your RSS feed to
    keep updated with drawing close post. Thank you a million and please keep up the gratifying work.

  11. hello!,I love your writing very much! percentage we keep in touch more approximately your article on AOL?

    I require an expert on this area to unravel my problem.
    Maybe that is you! Having a look ahead to peer you.

  12. Greetings! This is my 1st comment here so I just
    wanted to give a quick shout out and tell you I truly enjoy reading your blog posts.
    Can you suggest any other blogs/websites/forums that cover
    the same subjects? Thanks a ton!

  13. We’re a group of volunteers and opening a new scheme in our community.
    Your site offered us with useful info to work on. You’ve performed a formidable process and our entire community might be thankful to you.

Leave a Reply

Your email address will not be published. Required fields are marked *