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First with the News

Ugandan Government Moves To Halt Oil Imports Through Kenya

November 1, 2023
in Top Stories, World
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Uganda Energy Minister Ruth Nankabirwa

Uganda Energy Minister Ruth Nankabirwa

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By Ebi Kesiena

Authorities in Uganda have disclosed plans to start importing petroleum products through the Uganda National Oil Company (UNOC), ending decades of reliance on Kenya’s imported oil.

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Uganda Energy Minister Ruth Nankabirwa said the country is amending laws to allow UNOC to participate directly in the import market and supply to the country’s licensed oil marketers.

In a statement on Wednesday, Nankabirwa said, the move will in the long run contribute to reduce pump prices.

“This will contribute to the reduction of pump prices by eliminating unwarranted transactions in the supply chain and provide additional revenue to the government”.

According to the Energy Minister, currently, Uganda oil marketers can source from Kenyan oil marketers participating in the Open Tender System.

However, this, Nankabirwa said, has exposed Uganda to occasional supply vulnerabilities leading to high prices.

“Uganda oil marketers are being considered secondary in cases of supply disruptions. These saw the country receiving relatively costly products impacting the retail pump prices,” she explained.

The country sources 90 percent of its petroleum products from Kenya through the port of Mombasa, and 10 percent through the port of Dar es Salaam, Tanzania.

The country entered into a five-year contract with Vitol Bahrain E.C. (global energy trader) to finance the importation and ensure competitive pricing.

“UNOC and Vitol Bahrain E.C. have negotiated a five-year contract, and the Partner (Vitol) will be financing the business by providing a working capital,” she said

Tags: breakingHeritageheritage timesheritagetimesmediahtlatestnewsthe heritage timesthehtafricathtthtafricatop storiesUganda Energy Minister Ruth Nankabirwa
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