The government will today meet more than 40 private fuel companies under their umbrella body, the Sustainable Energies and Petroleum Association (SEPA), to discuss a Cabinet resolution on the importation of refined petroleum and related products.
The meeting will be conducted by the Uganda National Oil Company (UNOC), the government entity that manages the country’s interests in the petroleum business.
UNOC will in the new plan take over the sole importation of refined petroleum and related products from the Swiss-based Dutch global energy and commodities giant, Vitol Group, and in turn, sell them to private oil marketing companies (OMCs) in the country.
The plan, when implemented, will end the current open tender system (OTS) used by Ugandan OMCs to buy petroleum products directly from Kenya.
Officials said the new plan will stabilise stocks, solve price fluctuations and also open a new revenue stream for Unoc.
Anthony Ogalo, the chairperson of Sepa, said today’s meeting will enable them (OMCs) to learn more about the deal, which they have been hearing and reading about in news reports.
The development comes barely a week after the Energy minister, Ms Ruth Nankabirwa, briefed Parliament about Cabinet’s proposal to empower Unoc to solely import fuel products into the country and later transact with OMCs.
Nankabirwa said an amendment of the Act will enable Unoc to purchase directly from overseas, through Mombasa and Dar es Salaam ports, and thereafter deliver to Uganda oil marketing companies.
