Rwanda plans to increase its petroleum reserve storage capacity from the current 110 million litres–enough to last for about two months in case of supply disruption–to at least 320 million litres in the next two years, the Minister of Trade and Industry, Prudence Sebahizi, announced.
The expansion is aimed at responding to the growing demand for fuel in the country, ensuring that reserves can last for up to six months as the government is considering, as an incentive, increasing the payment to depot investors for the use of their storage facilities, he explained.
The fuel reserve depots established in 2017 can store up to 111 million litres.
“At that time, we could use about 600,000 litres per day. So, the reserve could last for six months. However, due to the growth in the number of vehicles and factories, we now use at least two million litres daily. This means the reserve can only last for about two months,” he said.
“Our goal is to increase storage from 111 million litres to at least 320 million litres within the next two years,” Sebahizi stated, pointing out that this strategy aims to ensure the country has a sufficient petroleum reserve in case of regional supply disruptions.
In collaboration with companies involved in the petroleum trade, the government is working to build additional storage facilities.
He observed that this is an opportunity for investors and that the facilities will be used by the traders and the government as a strategic as well as a commercial reserve.
“We are in discussions to increase that [payment], what we call throughput – that amount of money that they will gain on one litre of petroleum stored. So, that price is going to increase and it will be an incentive for them to build more storage facilities. We are discussing how much we can increase. It’s an ongoing conversation.”