November 6, 2023 [The East African]- The open tender system used by Ugandan companies to buy petroleum products from Kenya is in its final days after Energy Minister Ruth Nankabirwa tabled the Petroleum Supply (Amendment) Bill 2023 in parliament, seeking to empower government-owned Uganda National Oil Company (Unoc) to take over the supply of oil.
The government had met with over 40 fuel companies under the Sustainable Energies and Petroleum Association (Sepa), to discuss a Cabinet resolution on the importation of refined petroleum and related products.
According to the Cabinet resolution, announced by Ms Nankabirwa, Unoc will be the sole importer of petroleum and related products, supplied by Vitol Group. Unoc will then sell to private oil marketing companies.
“Unoc and Vitol Bahrain E.C have negotiated a five-year contract, and the partner (Vitol) will be financing the business by providing a working capital,” she said, adding: “Using Kenyan importers had exposed Uganda to occasional supply vulnerabilities where the Ugandan retail companies were considered secondary whenever there were supply disruptions, which affected retail prices.”
“Kenya has for decades decided what petroleum products Uganda buys, when, from where, how much, who buys and at what price,” Ms Nankabirwa added.
12,600 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data