The Uganda National Oil Company (UNOC) is set to import its first order of petroleum products through Mombasa port in June 2024 after receiving a license from Kenya’s Energy and Petroleum Regulatory Authority (EPRA). Last month, Kenya granted UNOC the license to import petroleum products through Mombasa port, ending a standoff involving the two countries’ presidents. As a result of the feud, Uganda also explored the Tanzania route.
Dr. Ruth Nankabirwa, the Minister of Energy, attributed the delay in obtaining the license to a setback in UNOC’s plans. “We received the license this month, but it was too late for the April products to come. So, we shall now place an order for June,” she stated during the swearing-in ceremony of new UNOC Board members on Tuesday.
Under the new arrangement, UNOC will collaborate with partners to ensure a reduction in pump prices. Although Uganda imports 90 percent of its refined petroleum products through Mombasa port, they have traditionally been handled by oil marketing companies operating in Kenya through the Kenya Open Tender System.
However, Uganda made a policy shift last year, empowering UNOC to be the sole importer and supplier of all petroleum products. UNOC will purchase petroleum imports from Vitol Bahrain. Additionally, the government plans to construct a storage terminal in Namwabula, Mpigi District, to stabilize the oil and petroleum products market and manage pump prices.
Mathias Katamba, the new UNOC chairman succeeding Emmanuel Katongole, affirmed that they would collaborate with partners to reduce pump prices as soon as possible. The seven-member board includes six non-executive directors: Eng Herbert Mugizi, Ms Justine Isenyi, Dr Ivan Lule, Mr Moses Kabanda, Dr Simon Echegu, and Ms Zulaika M. Kasajja.
