KIGALI, July 10 (Xinhua) — The Rwandan government spent nearly 48 billion Rwandan francs (about 32 million U.S. dollars) on fuel subsidies between March and June this year to shield consumers and businesses from surging oil prices triggered by the conflict in the Middle East, Prime Minister Justin Nsengiyumva said on Thursday.
Addressing the parliament in the capital, Kigali, 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 2,927 Rwandan francs per liter, compared with an estimated 3,600 francs per liter without government intervention.
To strengthen energy security, the government has continued investing in fuel storage infrastructure. Rwanda’s fuel storage capacity currently stands at 118 million liters and is projected to increase to 230 million liters 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.
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, creates opportunities for investors, generates jobs, and advances the country’s path toward sustainable development,” Nsengiyumva said.
