Rwanda has spent Rwf47.7 billion on fuel subsidies between March and June 2026 to cushion consumers and businesses from rising petroleum prices, Prime Minister Justin Nsengiyumva has said.
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He said the subsidy helped maintain the price of diesel at Rwf2,927 per litre, instead of the market price of about Rwf3,600 per litre, as part of measures to protect citizens from the impact of international fuel price increases.
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Delivering a presentation to Parliament under the theme "Strengthening Rwanda's Resilience to Internal and External Shocks," the Prime Minister said the government is implementing measures to reduce the impact of global disruptions on the economy and ensure stability.
"Fuel price increases often affect transport costs, production expenses, and the general cost of living. The subsidy intervention was aimed at limiting the transmission of higher global oil prices to households and businesses," he said.
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He also highlighted plans to expand petroleum storage capacity as part of efforts to improve energy security.
Fuel storage capacity to reach 230 million litres
Rwanda's current fuel storage capacity stands at 118 million litres, with plans to increase it to 230 million litres by 2029/30, he said.
He explained that increasing strategic fuel reserves would enable the country to better respond to supply disruptions caused by global market volatility, geopolitical tensions, or challenges along regional supply routes.
The government is also diversifying petroleum import channels to improve reliability of supply.
Among the measures is facilitating larger fuel shipments.
The interventions form part of broader efforts to strengthen Rwanda's resilience in key sectors, including energy, food security, infrastructure, and the economy, amid external pressures such as global price fluctuations and supply chain disruptions.
