Rwanda is moving closer to solving challenges of fuel demand and supply in the growing local market.
President Paul Kagame has today unveiled Rwanda’s second biggest fuel depot at Rusororo sector in Gasabo District outside Kigali.
The new depot jointly owned by Societe Petroliere S.A.R.L has storage capacity of 22 million litres of which can help the country meet its petroleum needs for three months.
Rwanda has been importing its petroleum products from East African neighbours which would take several days in transit by fuel trucks.
Kagame was taken on a guided tour of the depot site. He later said Rwanda wants to ensure that Investors see benefits in the country.
“We need to identify and overcome our shortcomings to ensure investors continue to see a benefit to investing in Rwanda,” he said.
The Rusororo petroleum depot project was built through public private partnership which Kagame says, “We have to build on this to go even further and faster.”
The depot estimated to have cost $16 million is constructed on eight hectares.
Previously Rwanda had other national reserves with capacity of 30 million litres stored at Gatsata Depots (15 million litres), Kabuye (5 million litres). These were also supplemented by smaller storage facilities at Kigali International Airport and in Rwabuye in the Southern Province.
According to Societe Petroliere , about 70% of petroleum products in these storage facilities is reserved as government’s strategic stock. About 5.6 million litres for open market.
The country has for long been looking to boost its fuel stock through partnerhsips with private oil dealers with intentions of expanding reserves up to 150 million litres essential in ensuring the country has enough fuel to supply the market and stabilise pump prices.
According to Rwanda Utilities Regulatory Agency the use of petroleum products in the country’s grows at an annual average rate of 10.1 per cent.