UNOC, the sole importer of petroleum products, clarifies its import mandate

Summary

• UNOC will source petroleum products from the international market and supply the Oil Marketing Companies (OMCs).

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The Uganda National Oil Company (UNOC) has thrown more light on the latest about its mandate as a sole importer of petroleum products.

In its publication accessed by the Hoima city-based The Black Examiner infrastructure, UNOC assures that it will do the best to accomplish this through the strategic partnerships it has already established.

The company adds that as it seeks to deliver on enhancing the supply of petroleum products into the country, it is preparing to handle Ugandan refined petroleum products equally and effectively.

This follows the enactment of the Petroleum Supply (Amendment) Act, 2023 which facilitated UNOC’s acquisition of sole petroleum products importation status in December 2023.

It continues that going forward, it will source petroleum products from the international market and supply the Oil Marketing Companies (OMCs).

According to UNOC, the sole importation mandate it holds helps to ensure security of supply, ultimately reversing the past trend of price hikes triggered by shortages.

It also eliminates middlemen who emerged following Kenya’s introduction of the Government-Government system of petroleum products importation.

The development facilitates the evolution of the Bulk Trading Business in which the company hitherto imported bulk fuel from supply sources along the value chain and sold to OMCs. The OMCs sold the fuel on the Ugandan market.

Following acquisition of relevant licences and regulatory approvals, the business was launched on March 16, 2021, with a delivery of 430,000 litres of diesel to Stabex International Ltd, one of the leading oil marketing companies.

Several transactions were thereafter safely and profitability implemented, paving the way for the desired business development and growth.

UNOC has positioned itself strategically within the petroleum products supply chain to import the products in bulk from various supply sources and deliver to the OMCs a good portion of their monthly demand.