Downstream petroleum SUB-SECTOR

Rwanda currently imports petroleum products from either the central or the northern corridor. The cost of oil imports is on average 25% of total import costs and accounts for 55% of the entire export revenues. The demand for petroleum products is forecasted to grow at an average of 10% each year between now and 2020. The cost of procurement has an important macro-economic impact.

Under the revised law establishing RURA, the Regulatory Authority is entrusted with the regulation of the downstream petroleum infrastructure, i.e., oil storage depots, petrol service stations and the importation, transmission, distribution, trade of Liquefied Petroleum Gas (LPG) as well as construction and operation of LPG storage and filling plants.

Overview

Rwanda has an ambitious target of increasing its strategic storage capacity to an equivalent of 4 months from 1.5 months of consumption requirements, the target being to have a storage capacity of 150 million litres by 2017. Currently the total fuel storage capacity splits among 5 depots in Rwanda which is 31,700 M3. Due this reason, the GoR has been encouraging the private sector to consider investing in oil storage depots to cater for the growing demand and supply security at times of necessity given the uncertainty surrounding the supply which comes exclusively overland.

RURA role

In order to address the general concern of petrol filling stations being constructed in a sub-standard and unsafe manner, RURA, in collaboration with stakeholders, issued guidelines for the construction of petrol filling stations in 2011.

After the adoption of the Rwanda Standard on “Installations, modification and decommissioning of underground storage tanks, pumps/dispensers, pipework at service stations and consumer installation” (RS 744-1:2012), RURA embarked on the development of Draft Regulations on Construction and Operation of Petrol Service Stations to be validated in a stakeholder meeting scheduled in the near future.