Local petroleum oil company to be formed

To address fuel storages in the country, government is in advanced stages of forming a local fuel company. If formed, the company will construct reserves that can serve Rwanda for up to about four to six months. The petroleum company is to boost the country’s fuel storage capacity, to ensure steady supplies of oil—vital in running industries, the transport sector and lighting. The move comes after the country suffered shortages in December last year, partly because the current government reservoirs and petroleum companies did not have the capacity to import, when Kenya had been plunged in a political crisis. The post-election violence in Kenya had devastating effects throughout East Africa as fuel shipments from Mombasa, the region’s largest port, ground to a halt.Rwanda needed 15 million cubic meters of fuel per month but the supply then was 8 million cubic meters monthly. It is estimated that on average, daily fuel consumption is 130,000 litres. Claire Akamanzi, deputy director general of Rwanda investment and export promotion authority (Reipa) said they have invited the general public to register and raise the capital—for the petroleum company. She said if formed, there will be an increase in storage capacities in the country, which can address fuel price instabilities. Akamanzi said the company that will only deal in petroleum products will buy and import in bulk to supplement on the government reserves. She further said, the minimum capital from each interested individual is not established yet, but hinted that it may be $12m (Frw6.524 b). However, she was quick to say that the response from the public is so far good. “The registered individuals will thereafter meet and draw-up a business plan. And the company is expected to be fully registered by the end of the first quarter this year,” Akamazi said.Ends