Museveni announced that the government has entered into contracts with bulk suppliers to export petroleum products to Uganda at lower prices. This move is expected to alleviate the financial burden on Ugandan citizens who have been grappling with rising fuel prices. President Museveni’s statement, made on November 5, sheds light on the nation’s shift away from purchasing petroleum products from middlemen in Kenya, a practice that has been prevalent for years.
The President did not disclose specific details about the contracted suppliers. However, he expressed his astonishment at the fact that Uganda, as a whole country, had been relying on middlemen in Kenya and other regions for its petroleum needs. He questioned the rationale behind not directly procuring petroleum from refineries abroad and then transporting it through Kenya and Tanzania. By eliminating the intermediaries, it is expected that the associated costs can be significantly reduced.
President Museveni, who has been in power since 1986, revealed that Uganda had been obtaining its petroleum through middlemen for an extended period. He also acknowledged the invaluable contributions of whistleblowers in bringing to light certain questionable business deals. Notably, he engaged in discussions with Mr. William Ruto, the President of Kenya, regarding this issue. In addition, a delegation was dispatched to Dar-es-Salaam to hold talks with Ms. Samia Suluhu, the President of Tanzania, to explore potential solutions.
To provide context and underscore the magnitude of the issue, President Museveni shared statistics indicating the financial losses incurred by Uganda at East African ports. The country had been losing approximately $35 per tonne of diesel, $36 per tonne of petrol, and $35 per tonne of kerosene due to the involvement of middlemen. He further alluded to a campaign, both in social media and mainstream media, orchestrated by internal entities against their efforts to counter overcharging, a campaign he believes is supported by certain media outlets.
President Museveni assured the people of Inland East Africa that competitive petroleum products would be made available, free from the distortions caused by middlemen. This shift in procurement is expected to benefit not only Uganda but also regions including North-Western Tanzania, Rwanda, Burundi, Western Kenya, South Sudan, and Eastern Democratic Republic of the Congo.
The President clarified that he had no prior knowledge of substantial business deals involving government officials importing petroleum products into the country. Uganda has been importing petroleum products on a vast scale, with an annual volume of approximately 2.5 billion liters valued at around USD 2 billion. This significant transformation in the procurement of petroleum products holds the promise of lower fuel prices and financial relief for the Ugandan population.
