Energy Minister Ruth Nankabirwa has announced Uganda’s intention to ramp up its importation of petroleum products through Tanzania, aiming to strengthen utilization of the Tanzanian route and empower the Uganda National Oil Company (UNOC) as the sole importer and supplier.
The decision follows discussions between Minister Nankabirwa and Tanzania’s President Samia Suluhu in Zanzibar, where they explored opportunities to enhance petroleum product supply into Uganda.
The move to prioritize the Tanzanian route comes after setbacks in Uganda’s plan to utilize Kenya’s oil pipeline, which faced challenges in recent months. Minister Nankabirwa emphasized the need for alternatives, citing the refusal by the Kenyan High Court to dismiss a petition halting the issuance of a license to UNOC.
Uganda currently relies heavily on petroleum imports, with more than 90% imported through the Mombasa port in Kenya and the remainder through the Dar-es-Salaam port in Tanzania. Minister Nankabirwa’s announcement signals a shift towards leveraging the Tanzanian route to ensure stable and efficient petroleum product supply.
President Yoweri Museveni previously raised concerns about overcharging for petroleum products sourced abroad, highlighting the need for transparent and cost-effective importation processes. He emphasized the significant financial losses incurred due to intermediary transactions, urging for reforms to streamline the importation chain and mitigate economic losses.
