Uganda’s Parliament has passed a bill that set to monopolize the country’s oil sector. If approved by President Yoweri Museveni, would allow the state-owned oil company, Uganda National Oil Company (UNOC), to source and supply oil to the domestic market.
This move is significant as it marks the end of Uganda’s long-standing practice of relying on Kenyan companies for oil imports. As a landlocked country, Uganda currently imports over 90% of its fuel through Kenya’s Mombasa port, with the remaining portion coming through Tanzania’s Dar es Salaam port.
Plans are underway to maintain buffer stocks in the country and may call upon Tanzania in the event of supply disruptions. This strategy is aimed at ensuring a more secure and stable supply of petroleum products.
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Policy change
The bill according to the members of parliament will lead to a reduction in fuel costs by eliminating middlemen and what they refer to as “fuel cartels” that influence fuel pricing. Uganda’s Energy Minister, Ruth Nankabirwa pointed out that depending on the other countries exposes Uganda to occasional supply vulnerabilities when Ugandan oil marketing companies are considered secondary during supply disruptions.
Uganda is actively engaging with the Government of Kenya to ensure a smooth transition and implementation of the policy change. Both countries have expressed a commitment to regional stability and economic growth.