The Chief Executive Officer of the Uganda National Oil Company (UNOC), Proscovia Nabbanja, held a meeting with Commissioner General John Musinguzi to provide an update on UNOC’s plan to become the exclusive supplier of petroleum products in Uganda.

Nabbanja outlined UNOC’s intention to replace the current Kenyan open tender system, ensuring that Kenyan suppliers focus solely on serving Kenya while Ugandan oil companies procure from UNOC. This meeting was a follow-up to a presidential directive that granted UNOC the role of sole petroleum product importer. This directive was issued due to election-related instability in Kenya, which had caused delays in the movement of goods, including petroleum products, leading to increased fuel prices.

The government anticipates that this move will enhance stock stability, stabilize prices, and create a new revenue source for Uganda. Nabbanja proposed a meeting involving URA, KRA, and UNOC to discuss tax implications, required documentation, and support needed to ensure the success of the project.

Musinguzi praised UNOC for its progress and encouraged the organization to reduce inefficiencies in the existing open tender system once they assume control. He emphasized the significant role of fuel in customs revenue and urged the team to maintain the current practice of tax payment before fuel leaves the port in Mombasa.

Musinguzi assured his support and collaboration, recognizing the vital role of petroleum in revenue generation.