Rwanda to boost fuel reserves

04 July 2016, Kigali – Rwanda’s planned strategic fuel reserves to cushion the country against supply shocks will cost $84 million.

IPMAN-fuel pumpAlthough a strategic investor is yet to be found, the planned investment is set to increase the country’s fuel storage capacity from the current 74 million litres to 150 million litres by 2018. This will place Rwanda ahead of its peers in the region.

Expanding the fuel reserve capacity comes ahead of the 2017 Kenyan election, which local analysts fear could affect the flow of goods on the Northern Corridor.

The 2007 post-elections violence in Kenya disrupted imports including fuel and petroleum products to East Africa’s landlocked countries.

However, Robert Opirah, director-general for trade, and industry in the Ministry of Trade said Rwanda now imports less fuel through Mombasa and any supply disruption along the route will have less impact.

Mr Opirah noted that 80 per cent of the country’s fuel is imported through Dar es Salaam port. The country’s annual fuel demand is growing at 10.1 per cent and currently 230 million litres of fuel is consumed with heavy fuel generated power galloping the biggest percentage of imported fuel.

 

  • The East African
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