The subsidy helped keep the price of diesel at Rwf 2,927 per litre on the Rwandan market, instead of rising to about Rwf 3,600 per litre, which would have been the expected price without government intervention.

Prime Minister Nsengiyumva made the remarks on July 9, 2026, while presenting to a joint session of Parliament the government’s measures to strengthen Rwanda’s economic resilience and protect citizens’ welfare amid domestic and global challenges.

Global trade has been significantly affected by international conflicts, including tensions in the Middle East, which have contributed to disruptions in fuel markets.

Petroleum prices on international markets began rising sharply in February 2026, with the price of a barrel of crude oil increasing from about $70 to more than $126.

The increase pushed petrol prices up by nearly 48 percent and diesel prices by about 50 percent.

The rise affected several sectors, including transport, fertilizer, cooking gas and food prices, contributing to increased living costs.

Dr. Nsengiyumva said the government responded by implementing measures aimed at protecting the economy and limiting the impact of price fluctuations.

“From March to June 2026, the government provided subsidies worth nearly Rwf 48 billion to the transport of people and goods to reduce the impact of rising fuel prices,” he said.

He added that the intervention helped slow the increase in transport costs and prices of other goods, preventing severe disruptions to citizens’ livelihoods and economic activities.

Under the latest fuel price review announced on June 5, 2026, a litre of petrol is selling at Rwf 2,938, while diesel is priced at Rwf 2,927 per litre.

Rwanda currently has storage capacity for about 118 million litres of petroleum products, with plans to increase this capacity to 230 million litres by 2029.

“This will help the country withstand shocks from international markets and ensure a reliable supply of petroleum products,” Dr. Nsengiyumva said.

Meanwhile, the number of passengers using buses has increased by 15 percent over the past six months.