Consumers have welcomed the reduction of cooking gas prices as the festive season approaches, saying although the cost is generally still high, the government intervention is a move in the right direction.

Cooking gas prices soared for the larger part of this year, reaching record high in the past few months, which prompted the government to intervene.

The prices have been slashed to Rwf1, 260 per Kilogramme from over Rwf1,500.

The new prices which took effect on December 15 brought some relief among the growing number of people who use gas for cooking in the country, saying it would have been untenable if gas prices remained high during the festive season when families prepare more meals as they celebrate with loved ones.

“This is like a Christmas gift to us, I am thankful for the government stepping in to subsidise and reduce gas prices, but the entire chain needs to be looked into to see where the problem is,” said Aphrodis Munyentwari, a resident of Kabeza.

At the height of the price surge, gas prices reached Rwf18000 and more for a 12Kg gas cylinder, yet just a year ago it went for Rwf12,000 in some parts of Kigali.

Going by the new rates, a 12Kg gas cylinder was expected to go for Rwf1, 5120, however, many retailers are selling it for as high as Rwf17000, while others sell it at Rwf16500.

Some retailers say they have to first deplete their stocks, which they bought at higher prices before they adhere to the new rates.

More people are increasingly adopting gas for cooking every passing year, which has increased the demand for LPG gas in Rwanda.

According to a report by the Rwanda Utilities Regulatory Authority (RURA), the total LPG imports increased by 32 percent from 24,873,425 kg to 32,931,501 kg this year, as a result of the growth in demand from households and institutions like hotels, schools, refugees camps, prisons, and restaurants.

The recent cargo and logistics complications, which were exacerbated by the Covid-19 pandemic, exposed the country’s storage gap for gas plants, which further contributed to the surge in gas prices.

The total storage capacity of commercial LPG facilities in the last year only expanded by 1.44 percent from 693.7 to 703.7 tonnes. But the market will see an additional capacity 17,000 tonnes from a gas reserve plant to be constructed by SP.