Uganda Partners with Vitol Bahrain to Tackle Fuel Price Hikes

Kampala, Uganda | THE BLACK EXAMINER | The Ugandan Minister for Energy and Mineral Development, Ruth Nankabirwa, has announced a significant agreement between the government and Vitol Bahrain, a Middle Eastern company, to address the escalating fuel price challenges in the country.

This partnership involves Vitol Bahrain supplying petroleum products to the Ugandan Company UNOC for distribution and retail within Uganda. However, the agreement has raised concerns due to a lack of prior disclosure and the absence of a legal framework to support its implementation.

Attorney General Kiryowa Kiwanuka clarified that the agreement’s enforcement hinges on the passage of the Petroleum Amendment Bill 2023, sparking discussions and questions from committee members. Some members expressed unease about the involvement of Vitol Bahrain as a middleman instead of the government handling fuel shipments directly. Government officials explained that this option would be considered if adequate funds became available.

Members of Parliament also raised concerns about Vitol Bahrain’s track record, particularly regarding continued price hikes in its costings. The committee’s discussions delved into the regulation of the monopolized company, leading to debates about potential shifts in the government’s liberalization policy.

Concurrently, the committee initiated the scrutiny of the Petroleum Amendment Bill, which seeks to empower the Uganda National Oil Company to be the exclusive supplier of all imported petroleum products. Advocates of this amendment argue that it will enhance stock holding levels and provide better control over the petroleum market.

The government’s collaboration with Vitol Bahrain is expected to play a crucial role in addressing rising fuel prices and ensuring a stable supply of petroleum products to Ugandan consumers.

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