Uganda State Oil Firm UNOC begins Fuel Sales After Kenya Fallout
The Minister for Energy and Mineral Development, Ruth Nankabirwa, recently revealed that the Ugandan government entered into an agreement with Vitol Bahrain, a Middle Eastern company, to monopolize the importation of petroleum products. This development comes as a response to the ongoing challenges of increasing fuel prices in the country.
By John Mutua,
Uganda National Oil Company (Unoc) has started selling petroleum products to oil marketing firms in Tanzania and Uganda as it tests the market ahead of rolling out a direct import deal with
Uganda National Oil Company (Unoc) has started selling petroleum products to oil marketing firms in Tanzania and Uganda as it tests the market ahead of rolling out a direct import deal with Vitol Bahrain.
Officials of oil companies who spoke to this publication say that Unoc has offered products to their subsidiaries in the two countries in small quantities.
Unoc is set to start directly importing from Vitol Bahrain under a five-year deal, as Uganda moves to end decades of relying on Kenyan oil marketing companies (OMCs) for supply of fuel.
Uganda and Kenya fell out after Nairobi inked a government-backed deal to import fuel on credit from three Gulf oil majors. Kampala says middlemen in the deal have led to high pump prices.
“Unoc is currently offering products for sale to OMCs in Tanzania and Uganda. This is fuel supplied by Vitol Group. They (Unoc) have offered the product to our subsidiary companies in Tanzania and Uganda,” an official at one of the OMCs told this publication.
Officials of oil companies who spoke to this publication say that Unoc has offered products to their subsidiaries in the two countries in small quantities.
Unoc is set to start directly importing from Vitol Bahrain under a five-year deal, as Uganda moves to end decades of relying on Kenyan oil marketing companies (OMCs) for supply of fuel.
Uganda and Kenya fell out after Nairobi inked a government-backed deal to import fuel on credit from three Gulf oil majors. Kampala says middlemen in the deal have led to high pump prices.
“Unoc is currently offering products for sale to OMCs in Tanzania and Uganda. This is fuel supplied by Vitol Group. They (Unoc) have offered the product to our subsidiary companies in Tanzania and Uganda,” an official at one of the OMCs told this publication.
