Uganda’s Ministry of Energy and Minerals has proposed a bill in parliament aimed at reducing the country’s reliance on Kenya for petroleum product imports. The move is in response to concerns about “occasional supply vulnerabilities” and rising pump prices when depending on Kenya.
The proposed bill would grant the Uganda National Oil Company Limited (UNOC) the responsibility of sourcing and supplying petroleum products for the Ugandan market, ending the current practice of importing over 90% of its petroleum products through the Port of Mombasa in Kenya and the rest through the Dar es Salaam port in Tanzania. Licensed Ugandan Oil Marketing Companies (OMCs) currently handle the importation, using structures in Kenya and Tanzania.
To ensure supply security, Uganda plans to maintain buffer stocks in Uganda and collaborate with Tanzania in case of supply disruptions.
The statement also mentions ongoing discussions with the Kenyan government to implement the policy change smoothly, emphasizing their shared commitment to regional stability and economic growth.
The proposed law has received approval from the Cabinet and now awaits approval from Parliament. This initiative comes in the context of rising fuel prices in Kenya, and experts have differing views on the factors contributing to this increase.
In Nairobi, under the new pump price guidelines, a liter of petrol costs Ksh.217.36, diesel is priced at Ksh.205.47, and kerosene at Ksh.205.06.
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