A worker holds a nozzle to pump petrol into a vehicle at a fuel station in Mumbai, India, May 21, 2018. REUTERS/Francis Mascarenhas

KIGALI, April 4 (Reuters) - The prices of petrol and diesel at the pump were increased in Rwanda on Monday, the utility regulator said, amid instability in the global oil market caused by Russia's invasion of Ukraine in February.

Rwanda has stabilised fuel pump prices since May 2021 by foregoing some taxes on petroleum products in a bid to dampen inflation.

But on Monday the landlocked country hiked the price of petrol 8.2% to 1,359 Rwandan francs ($1.32) per litre and diesel 13.9% to 1,368 Rwandan francs ($1.33) per litre for the next two months, said Deo Muvunyi, head of the Rwanda Utilities Regulatory Authority.

"We had seen these expected increases based on international prices," said Rwanda central bank governor John Rwangombwa.

The war in Ukraine heightened supply concerns that were already underpinning prices around the world. Sanctions imposed on Russia and buyers' avoidance of Russian oil have already led to a drop in output and raised fears of larger losses. read more

"The problem with fuel is that it affects other sectors. Fuel had started increasing even before the war (in Ukraine), the war added fuel to the fire," Rwangombwa said.

Robert Bafakurera, chairman of the private sector federation, said he expected knock-on affects on other items and prices going up. "It may affect all imported products," he said.

After being hit badly by the impact of coronavirus restrictions the economy expanded more than 10% last year, but Rwanda's finance minister forecasts inflationary pressures to curb growth to just 7.2% in 2022. read more

Our Standards: The Thomson Reuters Trust Principles.

Subscribe to our sustainability newsletter to make sense of the latest ESG trends affecting companies and governments.

Subscribe to our newsletter to get all the news you need to start your day.

Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers.

Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.

The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.

The industry leader for online information for tax, accounting and finance professionals.

Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile.

Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts.

Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.

All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.