Are rising fuel prices driving e-mobility transition?
Wednesday, April 29, 2026
A client tests a new electric car at Rwandamotor in Gahanga, Kicukiro District, Kigali, on April 1. Photo by Dan Gatsinzi.

When Longtai Auto Rwanda, a distributor of electric vehicles (EVs), began operations in Rwanda in June 2025, it sold only six cars in its first month.

Between July and December, the company sold just 49 vehicles.

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"In April 2026 alone, before the month even ended, we sold 80 cars. This shows increased uptake of electric vehicles compared to previous months amid the ongoing fuel crisis,” said Eng. François-Régis Irareba, an employee at Longtai Rwanda.

"When we started, many people did not understand the concept. As time goes by, more Rwandans are embracing electric cars. They are cheaper compared to petrol and diesel vehicles,” he added.

A new electric car in the showroom at Changan Auto in Gahanga, Kicukiro District, Kigali, on April 1. Photo by Dan Gatsinzi.

The growing interest in EVs comes at a time when global fuel prices continue to rise.

The Iran–US–Israel conflict, which began in late February, has contributed to volatility in global oil markets.

ALSO READ: Petrol price increases by over Rwf600

As a result, petrol prices in Rwanda rose to Rwf2,938 per litre, reflecting adjustments to global market trends.

According to Irareba, the fuel crisis has significantly influenced consumer behaviour.

"We introduced a project allowing clients to buy electric cars and pay in instalments. Uptake was initially low, with many potential customers visiting but not purchasing. However, amid the current fuel crisis, orders have increased,” he said.

New electric cars in the showroom at Changan Auto in Gahanga, Kicukiro District, Kigali, on April 1. Photo by Dan Gatsinzi.

Car dealers say rising demand for EVs is largely driven by lower operating costs and more accessible financing options.

The number of people purchasing electric vehicles in Rwanda is increasing, particularly among taxi drivers seeking to cut fuel expenses, according to Ian Nziza, Sales Director at Kason Motor Ltd, based in the Kigali Special Economic Zone.

"More drivers are replacing fuel-powered vehicles with electric cars because they are cheaper to operate daily. We have seen increased adoption since we started operations in March. Initially, we sold 20 cars, and this rose to more than 50 in April,” he said.

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Nziza noted that drivers who switch to EVs spend significantly less on fuel, allowing them to retain more of their daily income.

He added that financing partnerships with banks are also boosting uptake. Under these arrangements, customers pay only 10 per cent upfront, with banks covering the remaining cost.

"This has made EVs much more accessible,” he said, adding that 27 more vehicles are currently undergoing bank financing processes and are expected to be delivered soon.

Different EV models are gaining popularity among different customer segments.

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The 2025 BYD Yuan Up and Dongfeng E70 are popular among taxi drivers replacing older vehicles, while the Toyota BZ3X is commonly chosen by government officials and private individuals.

For organisations requiring larger passenger capacity, the Dongfeng Sky01 and other seven-seater electric vehicles are preferred options.

Kabisa, a leading EV Ecosystem in Africa has also reported growing public interest in electric mobility.

Iliiza Karangwa, Head of Marketing and Partnerships at Kabisa, said rising fuel prices have accelerated demand.

"Since the recent fuel price increases, we have seen approximately 30 per cent growth in inquiries. Customers who were previously undecided are now actively making decisions,” she said.

"When we launched in 2023, early adopters were mainly individuals interested in electric mobility. Today, our fastest-growing segment is businesses and corporations building electric fleets.”

For many drivers, the biggest attraction of EVs is reduced running costs.

Theoneste Rwandekeye, who recently switched to an electric vehicle, said he now spends about Rwf18,000 on a Kigali–Musanze return trip of around 200 kilometres, compared to roughly Rwf60,000 previously spent on a fuel-powered Toyota RAV4.

He added that an electric SUV costs around Rwf30 million, compared to about Rwf50 million for a similar fuel-powered model.

"Maintaining electric cars is affordable. They do not require oil changes. Changing engine oil for a fuel-powered car can cost around Rwf280,000 after driving 5,000 kilometres,” he said.

Eng. Elie Ndikubwimana, a technician at Auto Korea Garage, noted that EV technology continues to improve.

"Some electric vehicles are more powerful than those using petroleum products because manufacturers are continuously improving the technology,” he said.

1,555 electric cars imported in nine months

Alfred Byiringiro, Senior Technical Advisor for Transport at the Ministry of Infrastructure, said existing infrastructure is supporting EV adoption.

Between 2020 and 2024, Rwanda imported 512 fully electric cars.

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However, government incentives have significantly boosted imports.

"From July 2025 to the end of March 2026, a total of 1,555 fully electric cars were imported into Rwanda. What we are seeing is that the time has come to begin implementing plans to gradually phase out diesel and petrol vehicles,” Byiringiro said.

He noted that EVs were previously too expensive for many consumers.

"A 2019 study showed that an electric bus cost four times more than a fuel-powered one, while an electric motorcycle cost twice as much. This is why the government introduced incentives to make them more affordable,” he explained.

Electric vehicles, spare parts, batteries and charging equipment are zero-rated for VAT and exempt from import and excise duties.

Electricity tariffs for charging stations are capped at industrial rates, with further reductions during off-peak hours.

"So far, there are 71 electric car charging stations. Vehicles can also be charged at home, while motorcycles have charging stations across all districts,” he said.

Byiringiro added that, within the next two months, the government, working with the private sector plans to expand charging infrastructure nationwide.

Non-fiscal incentives include rent-free land for charging stations on government property, integration of EV infrastructure into building codes and urban planning, as well as preferential measures such as green number plates and access to dedicated lanes.

EV imports have grown steadily over the past five years. Rwanda imported just 19 electric cars in 2020, rising to 38 in 2021, 134 in 2022, 103 in 2023, and 218 in 2024. Hybrid vehicle imports also surged over the same period.