Rising fuel prices have become a daily concern for households and businesses in Rwanda, reshaping how people move, work, and spend.

In response, the government is exploring a range of solutions. About 50 electric buses are expected to be introduced in the City of Kigali by May, a move aimed at encouraging public transport use and easing mobility challenges.

Authorities are also promoting a shift towards electric mobility, among other initiatives.

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However, experts say more needs to be done, calling for both immediate coping strategies and long-term structural reforms to address the impact of high fuel costs.

Angello Musinguzi, Tax and Regulatory Partner at Garnet Partners Ltd, noted that rising fuel prices affect far more than the energy sector, with ripple effects across transport, food prices, and the overall cost of living.

He explained that Rwanda’s landlocked position makes it particularly vulnerable to external shocks, including global oil price fluctuations and regional supply chain disruptions.

"When fuel prices rise, the cost of essential goods also increases. This affects sectors such as agriculture and small trade, reducing profit margins for businesses while increasing the burden on households,” he said.

Short-term coping strategies

Despite the challenges, Musinguzi emphasised that a mix of short-term and long-term measures can help mitigate the impact.

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"In the short term, practical measures include improving logistics efficiency, encouraging public transport use, and sharing transport resources to minimise fuel consumption,” he said.

He added that many people are already adjusting by parking private vehicles and shifting to alternatives such as public transport and gas-powered solutions.

Transition to clean energy

Musinguzi stressed the importance of investing in sustainable alternatives, particularly electrification.

"In the long term, Rwanda should continue advancing electrification, including electric vehicles. This will reduce reliance on imported fuel and ensure mobility even when fuel prices are high,” he said.

He also called for targeted government support, including temporary incentives for sectors such as electric vehicle manufacturing and clean energy adoption to reduce costs and encourage uptake.

"Expanding renewable energy and exploring local resources like methane gas from Lake Kivu can help cut dependency on imported fuels,” he added.

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He further noted that financial institutions have a role to play in supporting investments in clean energy solutions.

While rising fuel prices pose immediate challenges, Musinguzi said they also present an opportunity for structural transformation.

"This is a chance for Rwanda to transition towards a more resilient, efficient, and sustainable economy,” he said.

Behavioural change and smarter mobility

Joseph Nkurunziza Ryarasa, a policy and development analyst, said reducing the impact of rising fuel prices requires both behavioural change and long-term urban planning reforms.

He pointed to remote and hybrid working arrangements as a practical solution to cut unnecessary travel and fuel consumption.

"For many employees across the private sector, public institutions, and NGOs, there is a need to embrace remote or hybrid work models. If people have internet access and laptops, they can work from home, reducing the need for daily commuting,” he said.

He noted that since most commuting relies on petrol and diesel vehicles, reducing movement would directly lower fuel demand.

Ryarasa also emphasised the importance of behavioural changes, such as cutting unnecessary trips and making greater use of public transport.

"Awareness is key. People can plan better by combining errands instead of making multiple trips,” he said.

Urban planning

Beyond short-term solutions, Ryarasa stressed that urban planning will be critical in reducing long-term fuel dependency.

"As cities implement master plans, there is an opportunity to promote mixed-use developments that combine residential, commercial, and office spaces,” he said.

Such planning, he explained, would bring essential services closer to where people live, reducing travel needs and lowering fuel consumption.