Cooking gas dealers close shop to protest price review

Sunday February 20 2022

Gas prices dropped due to new tariff that was sent be regulator.


Two months after a downward review of cooking gas tariffs, some dealers have closed shop citing low returns.

A new tariff put prices of cooking gas between Rwf1,260 per kilogramme and Rwf1,220 and Rwf1,150 maximum at cylinder filling plant.

According to a mini survey done by Rwanda Today in Huye district, at least eight big depots including petrol stations that sell gas have not restocked.

One of the dealers who closed shop revealed that the set price at Rwf 1,200 per kilogramme will subject them to losses.

"It's a challenge, you can't go beyond the set prices, they will punish you. At least I would sell 100 cylinders of cooking gas by the month, but if it continues this way, it will be difficult," the dealer said.

However, due to the stand off between dealers and the government over the set prices, shortage of cooking gas has hit Huye didstrict. This has opened avenues for black market where consumers are exploited.


For instance, Diane Umubyeyi, a student at the University of Rwanda Huye campus, recently refilled a six kilogramme of gas cylinder at Rwf 9,000 after three days after days of shortage. Private Sector Federations leadership confirmed that dealers have resolved not to restock cooking gas for fear of making losing.

"I know this issue. There are some traders who have stopped selling cooking gas. The prices havechanged and the traders need to go to Kigali to bring them and the transport is high. So, I think this will be solved by Rwanda Utilities Regulatory Authority," said Egide Private Sector Federation President.

According to Mr Egide, the Rwanda Utitlities Regulatory Authority should organise a meeting with distributors and retailers to strike a deal on the way forward.

Mount Meru, the only dealers with stock in Huye, said their sells have droped over the past few months from dtwo tonnes to 840 in two weeks.

"There are people who signed a contract with one company, and for now the small wholesalers need to only stick with them.  However, this makes them suffer from double transport for refilling. The Mount Meru stock-keeper said, who sought anonymity told Rwanda Today.

According to a lobby of private companies in the energy sector, the LPG market in the country is dominated by 10 importers.