The government is set to receive its first direct shipment of refined petroleum products, with a vessel carrying 40,000 tonnes equivalent to 52 million litres from Oman expected to arrive at Tanzania's Port of Tanga by the end of July 2026. The shipment follows an agreement between the Rwanda National Energy Company (RNEC) and Gulf Bulk Petroleum Tanzania Limited (GBP) to facilitate the importation and storage of bulk refined petroleum products through the Port of Tanga. ALSO READ: Rwanda signs deal to import petroleum through Tanzania's Port of Tanga Officials say the move marks a major step in strengthening Rwanda's fuel supply chain, reducing reliance on intermediaries and improving long-term price stability. Minister of Trade and Industry Antoine Kajangwe said Rwanda has signed agreements with both Kenya and Tanzania to enable direct procurement of petroleum products through the ports of Mombasa and Tanga. Through the Rwanda National Energy Company, the Government has signed agreements with the Kenya Pipeline Company to access fuel supplies through the Northern Corridor, Kajangwe said. He added that another agreement with a Tanzanian company operating fuel storage facilities at Tanga Port will allow Rwanda to receive shipments directly from global suppliers. These agreements will help address supply challenges by giving the Government and fuel dealers greater control over the supply chain, from production to the market, he said. ALSO READ: Why Rwanda's fuel demand surged by nearly 40 percent in April Kajangwe noted that direct procurement and larger fuel reserves are expected to lower import costs, ease pressure on pump prices and reduce dependence on a single transport route. Currently, about 90 per cent of Rwanda's petroleum products are transported through the Central Corridor via the Port of Dar es Salaam. The new arrangements will enable the country to use both the Central and Northern corridors while sourcing fuel directly from producing countries instead of relying on regional trading companies. Prime Minister Justin Nsengiyumva said the government has simplified fuel imports through partnerships with oil-producing and refining countries. To make the importation of petroleum products easier and ensure prices become lower and more stable in the long term, the Government has introduced a programme to jointly import refined petroleum products through the Rwanda National Energy Company, he said. ALSO READ: Rwanda, Tanzania sign 'strategic' energy deal The first vessel carrying 40,000 tonnes is expected to arrive at the Port of Tanga by the end of July 2026, and we will receive one vessel every month thereafter. This will help us achieve lower and more stable prices over the long term. The shipment is equivalent to approximately 50 million litres of petroleum products. Beginning in August 2026, Rwanda will also start importing fuel directly from Oman under a government-to-government agreement implemented through OQ Trading, the country's international energy trading company. The new system is expected to lower fuel prices, strengthen energy security and improve oversight of petroleum imports by significantly reducing the role of private trading companies that previously sourced fuel through ports in Kenya and Tanzania. ALSO READ: Rwanda, Kenya sign deal for petroleum importation through Northern Corridor Trade economist John Bosco Kalisa said the new supply agreements with Kenya and Tanzania could reduce pump prices by between 10 and 30 per cent over the next three years if fully implemented. According to Kalisa, the savings will come from bulk procurement, the elimination of intermediaries and more efficient supply logistics. If this agreement is implemented as signed, we are likely to save between 10 and 30 per cent of the pump price. By next year, we are likely to see a 10 per cent reduction, followed by 20 per cent and then 30 per cent as implementation progresses, he said. Fuel storage to nearly double Rwanda's fuel storage capacity currently stands at 118 million litres and is projected to increase to 230 million litres by the 2029/30 fiscal year. According to Prime Minister Nsengiyumva, expanding strategic fuel reserves will help the country better withstand supply disruptions caused by global market volatility, geopolitical tensions and challenges along regional transport corridors. He also revealed that the government spent Rwf47.7 billion on fuel subsidies between March and June 2026 to shield consumers and businesses from rising international oil prices. The subsidy kept the retail price of diesel at Rwf2,927 per litre instead of the estimated market price of about Rwf3,600 per litre.
