The Rwandan government said it has spent nearly Rwf48 billion (about $32 million) on fuel subsidies between March and June.

Prime Minister Justin Nsengiyumva said the subsidies were to shield consumers and businesses from surging oil prices triggered by the conflict in the Middle East.

Addressing the parliament in the capital, Kigali, Mr Nsengiyumva said the subsidies helped contain rising transport costs and curb increases in the prices of other goods, cushioning the economy and protecting household livelihoods.

He said the subsidies enabled the government to keep the price of diesel, a key input for agriculture and transportation, at Rwf2,927 per litre, compared with an estimated Rwf3,600 per litre without government intervention.

According to him, to strengthen energy security, the government has continued investing in fuel storage infrastructure.

Rwanda’s fuel storage capacity currently stands at 118 million litres and is projected to increase to 230 million litres by 2029, he said.

The government has also supported fuel importers by facilitating access to credit, enabling them to expand their import capacity and help ensure stable domestic supplies.

Mr Nsengiyumva said the government believes the measures will continue to cushion Rwanda against volatility in global energy markets and reinforce the country’s economic resilience.

“The government of Rwanda is committed to continuing to build a resilient economy that improves the livelihoods of citizens.

“The present administration is committed to creating opportunities for investors, generating jobs, and advancing the country’s path toward sustainable development,” Mr Nsengiyumva said. 

(Xinhua/NAN)