Rwanda is set to significantly increase its petroleum reserve capacity in a bid to strengthen the country’s fuel security and cushion against supply disruptions. 

The government plans to expand storage facilities from the current 110 million litres to at least 320 million litres within the next two years, ensuring reserves can last up to six months instead of the current two-month limit.

Trade and Industry Minister Prudence Sebahizi announced the plan on March 27 during a meeting of the National Consultative Forum of Political Organizations (NFPO) in Kigali. He emphasized that the expansion is driven by the rising demand for fuel, which has surged due to the growing number of vehicles and industrial activities.

“At that time, we could use about 600,000 litres per day. So, the reserve could last for six months. However, due to the growth in the number of vehicles and factories, we now use at least two million litres daily. This means the reserve can only last for about two months," Sebahizi explained.

To address this challenge, the government is focusing on expanding the Rusororo depots in Gasabo District and has allocated land in Ruhanga to investors for additional storage facilities. The initiative is part of a broader strategy to enhance energy security and support economic growth.

Sebahizi also highlighted the government’s efforts to incentivize private investment in petroleum storage. Currently, depot owners receive Rwf8 per litre stored, but discussions are underway to increase this amount to encourage further investment.

“This adjustment will make fuel storage more attractive for investors and contribute to building a more resilient fuel supply chain,” he said.

The expansion project, being carried out in partnership with private sector players, is expected to strengthen Rwanda’s ability to manage fuel supply fluctuations and stabilize prices in the long run.