The government has granted permission for private companies to continue importing petroleum products into the country. This decision aims to prevent potential fuel shortages and steep increases in pump prices resulting from an ongoing standoff with Kenyan fuel traders.
This move is seen as a positive development by many motorists, ensuring a steady supply of fuel until the trade dispute is resolved in a regional court. The dispute with Kenyan traders has caused a delay in the official plans for the Uganda National Oil Company (UNOC) to take over the exclusive importation of fuel, as mandated by a new law enacted last year.
Officials and UNOC representatives have confirmed that this decision is a temporary measure to address the anticipated disruptions in the fuel supply chain. The authorization for private dealers is made under a provision in the recently enacted petroleum law to prevent the country from facing a crisis in the event of supply disruptions.
According to Ms. Irene Batebe, the Energy Ministry Permanent Secretary, Uganda will continue using the Kenyan importation system until the government secures clearance for UNOC importation from Kenya. UNOC was supposed to start exclusive importation this month but faced challenges obtaining a key Petroleum Import License from Kenya.
As the issue is being resolved at a bilateral level, three Kenyan concerns filed a lawsuit in the High Court of Machakos, seeking to prevent UNOC from obtaining the license. Uganda’s Attorney General responded by taking the matter to the East African Court of Justice (EACJ), citing free trade commitments under the East African Community Treaty.
UNOC’s head of Legal and Corporate Affairs, Mr. Peter Muliisa, mentioned that the ongoing dispute has led to a delay in the planned monopoly takeover, extending the proposed date to late February or March pending the court’s decision.
