Uganda's Parliament on Tuesday passed the Petroleum Supply Amendment Bill 2023 which will eliminate Kenyan companies' dominance in fuel supply in the neighbouring country.
During the debate of the bill, the Energy Committee's chairperson Emmanuel Otaala explained that the bill would ensure that Uganda does not rely on Kenyan companies that were acting as middlemen.
He explained that the oil used to be imported by international companies, and then sold to Kenyan companies who later supplied them to various petrol stations in Uganda.
Otaala noted that the move was hurting its citizens given that the pump prices would then have to factor in the profits made by the international companies and the Kenyan companies in the process.
Therefore, with the passage of the bill, which now awaits ascension by President Yoweri Museveni, Uganda National Oil Company (UNOC) will be tasked with importing the oil directly from the refineries.
In the new plan, the oil will still be transported through Kenya as has been over the years.
However, the company will also explore new routes for the oil supply. Notably, Museveni had revealed that the country will also explore the transportation of the oil through Tanzania.
"The Ministry of Energy or Kenya instituted the quantities for the Kenyan Domestic Market and for onward transit to neighbouring countries at a 60:40 ratio respectively.
"In essence, all the fuel imported through Kenya is retained in the Kenyan market and Neighboring countries including Uganda, Rwanda and the Democratic Republic of Congo have to share the 40 per cent allocation," he stated.
On her part, Uganda's Energy Minister Ruth Nankabirwa noted that the passing of the bill would be revolutionary for their citizens as it would eliminate the cartel-like nature that had dominated the industry.
"The Bill will further enable the Government to ensure a steady supply of Petroleum Products, diversify supply routes and also save Ugandans from fuel cartels that arbitrarily influence fuel pricing, and cause pain at the pump for citizens," she stated.
The ascended bill will be ascended in the coming weeks.
