Petroleum depots in Rwanda
The government has announced plans to establish new petroleum storage facilities, funded through levies collected from gasoline and diesel sales, to bolster the country’s strategic fuel reserves.
Godfrey Kabera, the Minister of State in Charge of National Treasury in the Ministry of Finance and Economic Planning, revealed the government’s aim to expand its petroleum storage capacity to a minimum of 330 million liters, up from the current 66 million liters.
The expansion, he said, is critical for securing the nation’s fuel supply in times of crisis.
Speaking to parliament on March 19, 2025, Kabera explained that a proposed amendment to the fuel tax law would adjust the levy rates on gasoline and diesel to finance the construction of these storage facilities.
“We prepared this draft law to revise the levy rate on gasoline and diesel to be able to establish fuel reserve facilities,” Kabera said.
The proposed increase in fuel levies would be 17 units.
The new storage facilities are designed to be located in spacious areas with designated buffer zones to ensure public safety.
These facilities are expected to be large enough to store fuel for up to three months, including aviation fuel and other petroleum products, which Kabera highlighted as essential for national security.
“This includes aviation fuel and other petroleum products. The 330 million liters we aim to achieve corresponds to the three-month reserve period we have planned. We initiated this process early to avoid shortages,” he added.
During the session, MP Ntezimana raised concerns about the current status of existing storage facilities, particularly in the southern and northern regions.
He also questioned the high costs associated with building new infrastructure.
In response, Kabera assured that all government-owned storage facilities are fully operational, and that the government has secured land in Rusororo for the new facilities.
Additionally, he emphasized the involvement of the private sector in the storage expansion efforts.
MP De Bonheur Jeanne d’Arc expressed concerns about the potential conflict between the fuel levies and the government’s push for electric vehicles.
Kabera responded by acknowledging the growing popularity of hybrid vehicles but emphasized that gasoline and diesel-powered vehicles remain in use, and the aviation and industrial sectors still rely heavily on petroleum.
MP Murora questioned the impact of the increased levies on freight transportation, particularly for goods imported from neighboring countries.
He pointed out that foreign goods often have a price advantage over locally sourced products due to lower transportation costs.
Kabera reassured lawmakers, stating that the impact of the fuel levies on overall commodity prices would be minimal, with some goods seeing a price increase of only five units per kilogram.
Finally, Kabera clarified that the final consumer, including foreign service providers bringing goods into the country, would bear the cost of fuel levies on imported petroleum products.
These providers must pay the applicable fees upon entry, which would ultimately be passed on to consumers.
