Fuel Price Hike to Drive Up Infrastructure Costs, Warn Officials
Rising petroleum prices threaten road construction, water treatment, and manufacturing sectors
Kigali, April 4 – Rwanda’s recent fuel price increase is expected to ripple through the economy, driving up costs in infrastructure development, water treatment, and manufacturing, government officials warned.
State Minister for Infrastructure Jean de Dieu Uwihanganye said road construction projects could face higher expenses due to petroleum-dependent materials like bitumen, a key component in asphalt.
“Bitumen is essential for road construction, and its production relies on petroleum. While we currently have sufficient stock, rising input costs may push up overall project expenses,” Uwihanganye said during a media briefing on Sunday.
Construction and Logistics Hit Hard
The minister noted that diesel price hikes also affect transportation and logistics, further inflating infrastructure budgets. A road initially estimated at Rwf1 billion could see cost escalations as fuel-linked expenses climb.
Despite these challenges, Uwihanganye assured that no ongoing construction projects would stall due to material shortages. “Supply remains stable for now, so delays are not anticipated,” he said.
Beyond Roads: Water, Energy, and Manufacturing at Risk
The impact extends beyond construction. Petroleum-based chemicals used in water treatment, heavy fuel for backup power plants, and industrial materials like paints and tires may also become more expensive.
Trade and Industry Minister Prudence Sebahizi highlighted the strain on manufacturing, where plastics—a petroleum byproduct—make up roughly 60% of inputs for products like cars, electronics, and packaging.
“Industries heavily depend on plastic components. If fuel prices remain high, production costs could rise, affecting consumer prices,” Sebahizi said.
Government Monitoring Essential Supplies
Officials are tracking 50 critical products vulnerable to supply chain disruptions and engaging importers and diplomatic missions to stabilize stocks.
Sebahizi added that global tensions, including conflicts in the Middle East, continue to pressure fuel and gas markets, requiring close monitoring to mitigate economic fallout.
While water treatment chemicals and heavy fuel reserves remain adequate for now, officials cautioned that prolonged price surges could eventually trickle down to consumers.
— Reported by Nexio News
