Oil-related revenues in Uganda have surged by 54%, reflecting a significant increase in oil and gas investments. This rise comes as the country prepares for its first commercial oil production expected next year.
According to the Petroleum Fund report for the period ending June 30, 2023, oil and related products tax revenues increased by UGX 44 billion. The report, compiled by Accountant General Lawrence Semakula, indicates that the Petroleum Fund, managed by the Bank of Uganda, received a total of UGX 125.9 billion in tax and non-tax revenue. This marks a substantial increase from UGX 81.9 billion reported in the same period in June 2022.
Breakdown of Revenues
The majority of the revenue came from taxes, contributing UGX 118.6 billion (94%), while non-tax revenue accounted for UGX 7.4 billion (6%).
| Revenue Type | Amount (UGX) | Percentage |
|---|---|---|
| Tax Revenue | 118.6 billion | 94% |
| Non-Tax Revenue | 7.4 billion | 6% |
| Total | 125.9 billion | 100% |
Sources of Revenue
Tax revenues were primarily generated from corporation and withholding taxes, driven by increased oil and gas activities following the final investment decision announced in February 2022 and the commencement of production well drilling in January 2023. Non-tax revenues, on the other hand, were mainly derived from increased surface rentals and training fees paid in signature bonuses by Uganda National Oil Company and DGR Energy Turaco, following the signing of production sharing agreements for Kasuruban and Turaco Blocks.
No Withdrawals, But Foreign Exchange Losses
The report also noted that there were no withdrawals from the Petroleum Fund to support budgetary funding or reserve investment during the review period. However, the Fund did register foreign exchange losses amounting to UGX 499.8 million.
The value of the Petroleum Fund has more than doubled, rising to UGX 246.6 billion from UGX 121.1 billion. This increase is slightly offset by UGX 19.6 billion, which the Uganda Revenue Authority had collected but was yet to remit to the Fund.
The Petroleum Fund currently maintains three accounts: two are in the Bank of Uganda, denominated in Ugandan shillings, and the third, opened on June 23, 2017, is in the Federal Reserve Bank of New York, denominated in US dollars. The latter account facilitates investment under the Petroleum Revenue Investment Reserve.
