Over the past few days, Rwandan households have experienced a rise in cooking gas prices, raising concerns among consumers. While international gas prices remained stable, or even slightly decreased, local prices continue to rise, with importers attributing the increase to currency fluctuations.
The government has continued to promote clean cooking energy, including the use of cooking gas as a key component in transitioning away from firewood and charcoal. But the recent price increase is alarming for consumers who once saw it as an affordable alternative.
The New Times’ quick survey around the city indicated that gas refills for a 12-kilogram cylinder moved from Rwf19,800 to Rwf20,000 and Rwf21,000 depending on the retailer.
For 20 kilograms, the price increased from Rwf32,000 to Rwf35,000, for 15 kilograms, topping from Rwf24,000 to Rwf26,000, while the price for 6 kilograms moved to Rwf11,500 from Rwf10,500.
Gas prices rise depending on the retailer or negotiations, as there are currently no set price standards.
Claudien Habimana, a senior executive at Société Pétrolière Ltd (SP), one of the leading importers of petroleum and gas products in Rwanda, attributed the price hike entirely to foreign exchange fluctuations.
He emphasized that on the international market, the prices never increased, but because the importers buy in U.S dollars, it changes when they exchange in the local currency.
“Transportation costs from Mombasa to Kigali have not changed, but it is in U.S dollars. International gas prices have dropped slightly. But because it’s all in U.S dollars, when you change to Rwandan francs, it immediately pushes local prices up,” Habimana explained.
“For example, if last week, a kilogram of gas cost $2, at an exchange rate of Rwf1,450, that’s Rwf2,900. But if the rate changes to Rwf1,455 this week, the price becomes Rwf2,910, even though nothing else changed.”
Henriette Ishimwe, a Salesperson at Gasmart, a wholesaler and retailer of different gas products, said that the rise of the U.S dollar influences the rise in gas prices, but also noted that sometimes, weather conditions could also play a part.
“Our suppliers told us that during colder months, gas demand increases in Europe, and that can affect how much gas reaches us here,” Ishimwe said, adding that even though there is no standard price set for cooking gas, the prices are almost the same for importers, but may differ depending on the retailing or wholesaling company.
“The cooking gas prices started to increase two years ago, because if you look at the trend, it increases. For example, there was a time when a 12-kilo cooking gas cylinder cost Rwf10,000, but now it is around Rwf20,000. The price has doubled,” she added.
“A supplier who used to sell a kilo of cooking gas at Rwf1,400 is now selling it at Rwf1,450 or Rwf1,500. So, explaining that to a customer is sometimes very hard.”
Ishimwe noted that the recent increase started on Monday, June 2. Last week, six kilograms of cooking gas were sold at Rwf9,300, but now it is at Rwf9,600, while for 12 kilograms, it rose from Rwf18,600 last week to Rwf19,400 currently for retailers.
For some retailers, the rise in cooking gas prices remains uncertain, leaving them confused with no definite answers to give to their clients.
For Laurent Usizwemumugabo, a gas retailer in Kicukiro, the rise in prices remains a mystery.
“I really don’t understand what causes gas prices to rise,” he said.
“Suddenly, you hear that prices have increased, and there’s nothing you can do about it. Maybe it’s due to fuel and transportation costs since the gas is imported into the country.”
Germaine Uwineza (real name has been withheld), a gas retailer operating in Remera, echoed similar frustrations.
“We really don’t know why the prices have risen. We just heard from wholesalers that gas prices have risen,” she said.
Alice Uwase, the manager of a gas depot in Remera, argued that location plays a significant role in price differences across the city.
“The selling prices depend on the distance from the depot. Retailers will increase the selling price if they source from a distant location.”
The sudden price hikes are not only puzzling to retailers but are also taking a toll on everyday consumers. Liliane Umutoni, a regular cooking gas user, said the impact is being felt at the household level.
“A month ago, I bought a 6-kilogram gas cylinder for only Rwf10,000. But on Tuesday, when I went to buy it as usual, they told me the price had increased by Rwf1,000,” she recalled.
