Uganda’s Ministry of Energy initiated plans to cut over reliance on Kenya for importation of petroleum products.
In a proposed Bill, Uganda seeks to cease it’s reliance on Kenya to access petroleum products due to occasional supply vulnerabilities and an increase in fuel prices.Â
“These vulnerabilities paused additional challenges, resulting in Uganda receiving relatively costly products and ultimately impacting the retail pump prices,” read part of the statement adding that the move has been prompted by Kenya’s government-to-government importation deal with UAE and Saudi Arabia.
The Bill if approved by the Uganda’s national assembly, the Ministry of Energy explained that the landlocked country shall maintain its overall responsibility of regulating the importation of petroleum products into Uganda by granting the Uganda National Oil Company Limited (UNOC) the mandate to source and supply petroleum products for their markets.
Currently, Uganda imports more than 90 per cent of its petroleum products through the Port of Mombasa in Kenya and the rest through the Dar es Salaam port in Tanzania.
The importation is done independently by the licensed Ugandan Oil Marketing Companies (OMCs) however through the importation structures in Kenya and Tanzania.
“The Ugandan government remains in active dialogue with the Government of Kenya for a seamless implementation of the policy change. Both nations share a commitment to regional stability and economic growth,” read the statement.
So far, the law has been approved by Cabinet and is now waiting Parliament’s nod.
