Blow to Kenya as Uganda cuts its reliance for fuel imports over Ruto deal
3 min read
Uganda to cut fuel imports from Kenya over Ruto government-government oil deal with Saudi and United Arab Emirates (UAE) firms
Uganda to cut fuel imports from Kenya over Ruto government-government oil deal with Saudi and United Arab Emirates (UAE) firms.
The cabinet in Uganda has approved a bill to be tabled in the country’s National Assembly that would cut its reliance on Kenya for fuel imports.
Uganda National Oil Company (UNOC) will now be tasked under the proposed bill with locating and importing petroleum products for the nation’s oil marketing companies (OMCs).
Kenya’s government-to-government oil deal with Saudi and United Arab Emirates (UAE) corporations has resulted in high pump prices and supply issues for Uganda, according to a statement made by the country’s Energy Minister Ruth Nankabirwa Ssentamu.
“Despite the price-competitive nature of the Open Tender System in Kenya and its relatively normal supplies, it exposed Uganda to occasional supply vulnerabilities where the Ugandan OMCs were considered secondary whenever there were supply disruptions,” Dr Ssentamu stated.
“These vulnerabilities paused additional challenges, resulting in Uganda receiving relatively costly products and ultimately impacting the retail pump prices.”
The ministry claims that Mombasa Port receives 90.0% of Uganda’s petroleum product imports, with Dar es Salaam handling the remaining portion.
The fuel sold in Uganda is supplied by Kenyan OMCs to their affiliates in the neighbouring country. The minister now wants UNOC to source the products and supply them to local OMCs.
This would be a blow to Kenyan OMCs with outlets in Uganda as they would be forced to take part in a separate import deal with UNOC.
Billionaire Jaswant Rai meets King Charles III after loggerheads with Ruto
Raila meets King Charles III at State House
New intelligence document leak on Israel plan to transfer Gaza population to Egypt’s Sinai desert
Senior soldier trips, falls in front of King Charles III and President Ruto at State House (VIDEO)
“The Uganda National Oil Company (UNOC) will be responsible for sourcing and supplying petroleum products to the licensed Oil Marketing Companies (OMCs) involved in importing the products to Uganda,” the minister noted.
“Therefore, the OMCs will continue selling the products to consumers through their commercial arrangements and the retail fuel pumps.”
UNOC has also entered a deal Vitol Bahrain E.C. to help in sourcing and importing oil for the East African country. The Bahraini company will maintain reserves in Uganda and Tanzania, further cutting the flow of the products through Kenya.
“To guarantee the security of supply, the partnership has ensured that there will be buffer stocks in Uganda and Tanzania to be called upon should there be supply disruptions to the country. The Partner has also committed to finance the construction of additional capacity in partnership with UNOC of 320 million litres at Namwambula, Mpigim,” Ssentamu remarked.
Also read,
Blow to employees as KRA increases tax on benefits to 13 percent
Man kills self after a fight with father over vehicle, leaves suicide note
List of Best Performing Governors; Report
State House spends KSh700 million on a presidential dais supplementary budget estimates
Chief kills self after bursting wife with a police officer in a lodging
Detectives raid church selling bhang to congregants in Ongata Rongai
Follow us
