Speaking during a joint Parliamentary session on Thursday, June 19, Prime Minister Dr. Edouard Ngirente said the measure is intended to prevent unexpected disruptions linked to ongoing global conflicts, particularly the Israel-Iran war.
The conflict, which began on June 13, 2025, has sparked global concern over the potential shortage or surge in prices of petroleum products, which are essential for economies and daily life.
The fears are justified, given that both sides have targeted oil storage and infrastructure in their attacks. As of June 19, 2025, the price of a barrel of crude oil had risen to $78.85, reflecting a 7% increase since the war began.
Analysts warn that if the Strait of Hormuz, a vital oil transit route between Iran and Oman, were to be blocked, crude oil prices could spike to between $120 and $130 per barrel. The strait facilitates the daily movement of 16 to 21 million barrels of oil.
Addressing a joint session of Parliament while presenting the Government's performance in improving citizens' welfare, Prime Minister Ngirente was asked what measures Rwanda is taking to mitigate potential impacts from a possible closure of the Strait of Hormuz.
'We currently have a team assessing how this issue could affect us and the potential consequences. Since our petroleum is imported, any international disruption always prompts us to form a response team to determine the necessary steps," he responded.
'Even as we speak, the task force is monitoring daily updates on the state of fuel imports, national reserves, and weekly inflows â€" whether through Dar es Salaam or Mombasa â€" and evaluating how to distribute them based on origin and impact scenarios.'
Ngirente stressed, 'We aim to avoid surprises… the government must always stay prepared.'
Expected impacts
Minister of Infrastructure Dr. Jimmy Gasore explained that 20% of the world's petroleum passes through the Strait of Hormuz, including oil from countries like Saudi Arabia, Iraq, the United Arab Emirates, Kuwait, and Iran.
'All these countries export through that route. A disruption there would impact the global market, and consequently, Rwanda. We would likely experience a price increase or reduced import volumes,' he said.
He noted that while most shipping routes pass through Hormuz, such global-scale disruptions typically prompt swift international responses to prevent long-term crises.
'Even if something were to happen, we expect it would not last long. There might be price volatility, but not a severe global collapse.'
Rwanda currently has seven storage facilities with a combined capacity of 117.2 million litres of petrol, diesel, and jet fuel.
'You know we have strategic reserves, and a monitoring team constantly tracks imports to ensure our tanks are full where we can rely on our reserves in the case of a short-term disruption, while the world resolves the issue," Dr. Gasore stated.
Plans are underway to expand Rwanda's fuel storage capacity to 334 million litres.
IGIHE
