The Ugandan government has initiated the direct bulk importation of petroleum products, marking a significant shift in its fuel supply strategy.
The first consignment, carried by Mt. Navig 8 Martinez, arrived with 58,000 metric tonnes of petrol in Mombasa, imported by the Uganda National Oil Company (UNOC) since its establishment in 2015.
This new government initiative through UNOC aims to lower petroleum prices by streamlining distribution to oil marketers within Uganda, effectively locking out many previous importers.
Uganda selected Kenya over Tanzania for its modern oil handling infrastructure, following the launch of the KSh40 billion new Kipevu Oil Terminal (KOT) in August 2022. The maiden vessel was received at the Port of Mombasa, marking the beginning of this new importation strategy.
Ruth Nankabirwa, Uganda’s Minister for Energy and Mineral Development, praised Kenya’s port infrastructure development for facilitating efficient fuel importation. She also expressed concern over ongoing protests in Kenya and called for a swift resolution. Nankabirwa made these remarks at the Kenya Ports Authority (KPA) in Mombasa during the reception of the consignment.
The direct importation approach by Uganda has displaced numerous Kenyan oil marketers who previously supplied the country. Following a legislative change, UNOC has been designated as the sole supplier of petroleum products in Uganda.
Officials from Uganda and the Mombasa port announced the arrival of the second vessel, Mt. Sinbad, expected to dock the following day with 65,000 metric tonnes of diesel. The choice of Kenya over Tanzania was reaffirmed due to the advanced handling equipment at the KOT.
Nankabirwa highlighted the expected benefits of direct petroleum importation, including lower pump prices, faster delivery, and consistent supply. She also mentioned Uganda’s plans to expedite the construction of a fuel storage facility and refinery, with UNOC, a wholly state-owned agency, leading the initiative. Ensuring the safety, security, and quality of supply is a top priority for the Ugandan government.
“The importation of petroleum products will further cement our regional federation,” said Nankabirwa.
Kenya’s Principal Secretary of the State Department of Petroleum, Mohamed Liban, stated that it took 12 months to overcome hurdles and facilitate Uganda’s direct oil importation through Mombasa. The political goodwill of the presidents of Kenya and Uganda was instrumental in obtaining the necessary license for UNOC and signing the importation agreement.
Captain William Ruto, Managing Director of Kenya Ports Authority (KPA), hailed the first consignment of Ugandan fuel through Mombasa as a significant achievement. “This development signifies our government’s commitment to excellence and innovation in the oil and petroleum industry,” he said.
Ruto added that the operationalization of the new KOT has streamlined marine oil terminal operations, enhanced safety, and operational excellence. The new terminal has greatly increased capacity for handling oil and petroleum products, alleviating pressure from rising regional demand.
The direct bulk importation of petroleum products by Uganda marks a pivotal step in enhancing fuel supply efficiency and regional cooperation.
