The announcement was made by the Minister of State for Infrastructure, Ambassador Jean de Dieu Uwihanganye, after the price of diesel rose by Rwf722 per litre, from Rwf2,205 to Rwf2,927, largely due to rising international fuel prices.
Diesel price hikes typically lead to higher transport costs, as most buses and public transport vehicles operating in Rwanda run on diesel.
However, Uwihanganye assured commuters that transport fares would remain unchanged.
“Public transport buses will continue purchasing diesel at the previous price because the Government will provide a subsidy. We have worked with fuel station operators and transport companies to make this possible. The objective is to ensure that the benefit reaches ordinary citizens,” he said during an interview with RadioTV1.
He added that transport fares would remain stable across the country, including in Kigali and the provinces, because the main factor that would ordinarily drive fare increases has been addressed.
“The cost of transport will not increase anywhere in the country, whether in Kigali or upcountry,” he said.
Uwihanganye also noted that businesses are being encouraged to adapt to the changing fuel market and consider investing in electric vehicles as part of long-term efforts to reduce dependence on fossil fuels.
Claudien Habimana, Chief Executive Officer of Société Pétrolière (SP), one of Rwanda’s leading petroleum importers and distributors, confirmed to IGIHE that fuel companies had been informed about the subsidy plan, although it has not yet been implemented as authorities finalize operational details.
“The Rwanda Utilities Regulatory Authority [RURA] is still holding discussions with bus operators. Once they reach an agreement, we will receive guidance on how the system will work,” Habimana said.
“For now, public transport operators are paying the market price because we have not yet received official instructions. The discussions are ongoing, and we expect the framework to be finalized within the next few days.”
According to Habimana, RURA is preparing regulations that will determine how the diesel subsidy for public transport operators will be administered.
He explained that several options can be considered. Under one model, fuel stations could sell diesel to bus operators at the subsidized rate of Rwf2,205 per litre and later claim reimbursement from the Government. Another option would require transport companies to pay the full market price and then seek reimbursement through the subsidy scheme.
“If the proposal is approved, we could receive payment after deducting the subsidy and then recover the difference from the Government. Alternatively, bus operators could pay the full amount and later apply for reimbursement. Discussions are still ongoing regarding the most practical approach,” Habimana said.
On July 5, the Rwanda Utilities Regulatory Authority announced new fuel prices, maintaining petrol at Rwf2,938 per litre while increasing diesel from Rwf2,205 to Rwf2,927 per litre.
Prime Minister Dr. Justin Nsengiyumva recently revealed that without government intervention, the price of diesel could have reached Rwf3,581 per litre.
The recent surge in global fuel prices has largely been attributed to escalating tensions involving the United States, Israel and Iran. The conflict has disrupted shipping through the Strait of Hormuz, a strategic maritime route through which around 20 percent of the world’s daily oil supply passes.
