New petroleum deals ‘advance Rwanda’s ambitions as regional hub’

Rwanda is expected to receive its first shipment of petroleum products sourced from Oman under new government-to-government supply agreements with Kenya and Tanzania in early August, a development the Minister of Trade and Industry, Antoine-Marie Kajangwe, says will strengthen the country's fuel security and support its ambition to become a regional petroleum distribution hub. The consignment, shipped through Kenya, will meet 100 per cent of Rwanda's monthly petrol demand and about 60 percent of its diesel requirements. ALSO READ: Rwanda, Kenya fuel pact promises cheaper, safer imports Kajangwe said the agreements go beyond meeting Rwanda's domestic fuel needs, noting that they are expected to strengthen regional petroleum trade by enabling the country to supply neighbouring markets. “Beyond meeting domestic demand, the new fuel supply arrangement is expected to enable Rwanda to supply petroleum products to neighbouring countries,” Kajangwe said, adding that Rwanda's strategic location and growing trade infrastructure make it well placed to serve as a regional fuel distribution hub. ALSO READ: Rwanda signs deal to import petroleum through Tanzania's Port of Tanga He added that Rwanda already has experienced fuel traders and substantial storage capacity, with additional storage infrastructure under construction to support growing demand. “We have many experienced fuel traders, substantial storage facilities, and additional storage infrastructure is currently being built. We expect these developments to further support the growth of petroleum trade, with Rwanda serving as a distribution point for fuel to neighbouring countries.” Beyond expanding regional trade, the government says the new arrangements are also expected to strengthen Rwanda's energy security, lower procurement costs and help stabilise fuel prices. According to Kajangwe, the agreements diversify Rwanda's fuel import routes by allowing the country to source petroleum products through both the Central Corridor and the Northern Corridor. “Previously, nearly 90 per cent of our petroleum products were transported through the Central Corridor via the Port of Dar es Salaam. These two agreements now allow us to use both the Central Corridor and the Northern Corridor. This gives us greater security because, if one route experiences any disruption, we can rely on the other at any time.” The minister said Rwanda will also benefit from purchasing petroleum products directly from producers instead of buying fuel through intermediaries. “When you sign supply agreements directly with fuel producers, you are able to negotiate better deals than when purchasing fuel locally after it has already been imported by intermediaries. We believe this will have a positive impact on fuel prices, making them more affordable, and that Rwandans will begin to see the benefits once these transactions start.” The Kenyan agreement also allows Rwanda to procure petroleum products in bulk using Kenya's transport and storage infrastructure, a move stakeholders say will improve fuel procurement, storage and distribution while reducing reliance on intermediaries.

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New petroleum deals ‘advance Rwanda’s ambitions as regional hub’