Across fuel stations in the country, new prices have been implemented for the next two months—this marks the first time VAT (Value Added Tax) is being applied to petroleum products.
Tax experts say this long-awaited VAT introduction on fuel is a strategy to help the government close revenue gaps and strengthen economic self-reliance.
Following a report from RURA (Rwanda Utilities Regulatory Authority), petrol prices rose from 1,633 RWF to 1,803 RWF per litre—an increase of 170 RWF.
Diesel prices also increased by 110 RWF per litre, from 1,647 RWF to 1,757 RWF.
Although VAT has been added, Dr. Joseph Akumuntu, CEO of the Petroleum Importers Association, claims that without the tax increase, prices would have surged even higher.
Finance and tax expert Shri Devendra Pratap Singh says that the long exemption helped fuel importers rebuild, and the new taxes will assist the country in filling revenue shortfalls.
Domestic tax commissioner Batamuliza Hajara urges all petrol and diesel stockholders to register for VAT—registered sellers will be refunded VAT, while unregistered ones must enroll.
The VAT structure adds:
50 RWF per litre charged to consumers to expand national fuel reserves,
16 RWF per litre from importers for the same purpose,
Plus 15% VAT on fuel—factored in after other costs (insurance and road maintenance) are included.
Rwanda imports 60 million litres of fuel per month, with 30% petrol. In response to rising prices, RURA confirmed the government has stockpiled enough to cushion demand.
These new rates follow changes approved by the Cabinet on February 9, 2025, revising petroleum taxes, including the VAT on fuel products.
