Government through the ministry of energy and mineral development have tabled the petroleum supply amendment bill, 2023 on the flow of parliament seeking to mandate the Uganda national oil company (UNOC) to be the sole supplier of petroleum products to the licenced oil marketing companies in Uganda.
The move comes after the decision was presented and approved by the cabinet that sat on Monday, October 23, 2023
According to the minister of energy and mineral development Hon. Ruth Nankabirwa, the new law is aimed at addressing the challenges of high fuel prices in the country which come as a result of overdepending on our neighbours Kenya for fuel supply.
"we are trying to make sure that we answer the question which always comes up what is Uganda doing, because sometimes Kenya can decide to make their own oil marketing companies a priority where we have scarcity and the ugandan oil marketing companies become secondary so that leaves us with insecurity of supply and security of supply is very critical.” She said
"we've already had an engagement with all oil marketing companies and UNOC is continuing to engage with them, we had to introduce this.” She added
The minister also revealed their engagements with Kenyan government to the level of the president regarding their move and also thanked them for their services for the time they've been working together in the fuel business, adding that it's now time for Uganda to also come up with a new arrangement that will improve the supply of fuel in the country.
She further highlighted on government's plan for it's oil reserves in Jinja that have for long been inactive.
“Regarding Jinja oil reserves, UNOC was handed over these reserves 30million litre storage capacity and UNOC is working with their counterparts you know business people and when you go to Jinja you will see a different picture all together, that storage terminal is being upgraded but we are also planning to construct a bigger storage terminal which will store 320million litres of fuel and we are planning to get the fuel from the refinery in hoima which is going to refine 60,000 barrels of crude oil.” Said the minister
Highlights of what’s expected in this bill:
-Mandate UNOC to import petroleum products for ugandan market.
-Authorize the minister, with approval of cabinet, to nominate any other person to import petroleum products into the country.
-Improve security of supply of petroleum products for the country.
-Contribute to the reduction of the pump prices by eliminating unwarranted transactions in the supply chain.
-Provide additional revenue to UNOC which revenues will be earned through participation in importation supply chain.
The bill has been directed by the deputy speaker of parliament Thomas Tayebwa to the committee of natural resources for scrutiny, giving the committee a two weeks time to present it again in parliament for debate before it's passed.
Story by: derrick kanalo
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