This ambitious initiative, approved by the Chamber of Deputies on April 28, 2025, includes a new bill introducing a fuel levy to finance the construction of advanced storage facilities, addressing the country’s infrastructure limitations.

The approved law increases the levy on gasoline and diesel from 32.73 Rwandan Francs to 50 Francs per liter, a measure expected to raise an additional 5.2 billion Francs annually.

These funds, collected at customs and managed through a sub-account linked to the government’s single treasury account, will support the development of new storage facilities. The levy replaces an outdated regulation deemed insufficient to meet Rwanda’s growing energy demands.

The levy is expected to raise fuel prices by approximately 18 Francs per liter but with anticipated minimal consumer impact, particularly if global oil prices continue to decline. The expanded storage capacity aims to ensure a three-month fuel reserve, safeguarding Rwanda against supply disruptions.

Rwanda’s limited petroleum storage has posed challenges, with the country relying heavily on imports, primarily from Arab nations, transported through Tanzania and, to a lesser extent, Kenya.

The government’s strategy includes incentivizing private investment by raising the return for storage facility builders from 8 Francs per liter to between 12 and 14 Francs per liter, encouraging further private-sector participation.

Rwanda’s fuel storage infrastructure comprises both government and privately owned facilities, including OilCom’s site in Jabana, SP’s storage in Rusororo, government facilities in Gatsata, Rwabuye, and Bigogwe, and ERP’s facility in Kabuye.

Aviation fuel is stored at Kanombe International Airport and Rusororo. The expansion plan is expected to bolster these assets, enhancing the country’s ability to manage fuel reserves efficiently.

Rwanda’s fuel storage infrastructure comprises both government and privately owned facilities.