The Ugandan government has passed a bill to terminate Uganda’s fuel import deal with Kenya.
UGANDA’S Parliament passed a bill to ensure the security of petroleum product supply in the country.
The Uganda National Oil Company Limited (UNOC) will now be responsible for sourcing and supplying petroleum products to licensed Oil Marketing Companies.
According to MUSEVENI’S government, The amendment aims to improve supply security, reduce pump prices, and generate additional revenue for UNOC.
Currently, Uganda imports over 90% of its petroleum products through ports in Kenya and Tanzania, with licensed OMCs accessing their allocations through affiliated companies in these countries.
Kenya has replaced its Open Tender System with a Government-to-Government importation arrangement with the United Arab Emirates and the Kingdom of Saudi Arabia, causing occasional supply vulnerabilities for Uganda and impacting retail pump prices.
As a result of KENYA’S oil deal with it’s partners, Uganda has now taken measures To address this by amending Petroleum Supply Act.
Uganda will now source elsewhere and supply petroleum products to it’s citizens.
UGANDA’S government has now partnered with Vitol Bahrain E.C. to ensure competitive pricing and guarantee the security of supply, including buffer stocks in Uganda and Tanzania and financing the construction of additional capacity.
These changes aim to address the challenges faced by Uganda in the importation of petroleum products.