UGANDA | KENYA | FUEL 

Government has released $2.9m (about sh11b) to Uganda National Oil Company to buy eight million liters of fuel to hedge the country from any fuel crisis as a result of a post-election situation in Kenya that might cause any supply disruptions. 

At the moment, Finance state minister Henry Musasizi told New Vision that at the moment the government needs about $30m to stock the required 22 million liters. 

However, due to financial constraints, only sh11b could be released to UNOC to purchase the fuel. UNOC has already purchased the fuel and it is safely stored at Jinja as part of national fuel reserves. 

“ We needed about 22 million liters, but because of the current economic situation, we could only provide 8 million liters." The objective was to hedge the country against political risks in Kenya in case of any disruption in supply,” Musasizi said. 

Currently, sources said UNOC has over 6 million liters in stock. 

Last month, the Speaker of Parliament, Anita Among, tasked the government to provide its plans to implement recommendations by the Committee on Tourism, Trade, and Industry to stock fuel reserves in the Jinja district, amidst runaway prices. 

In its report that was adopted during the plenary sitting on Thursday, February 3, 2022, the committee also recommended that the Kampala Storage Terminal, which will store 60 million liters, should be constructed ahead of the Kenya elections in August 2022. 

The committee, chaired by MP Mwine Mpaka, also recommended that additional scanners be procured and deployed at the borders to hasten the clearance of oil tankers. 

“How ready are we in terms of our reserves?" What plans do we have as a country and what plans do we have to see how to regulate fuel prices? The report which was brought to this House said the reserves have nothing. We will need a report on how ready we are,” Among said. 

Among them was responding to concerns raised by Buhweju County MP, Francis Mwijukye, about the skyrocketing fuel prices and the Kenyan election. 

The country has witnessed an increase in fuel prices since January 2022, with prices rising from Shs4,000 a liter to the current Shs6,593 a liter. 

Mwijukye warned that the outcome of the forthcoming Kenyan elections may cause a further increase in fuel prices. 

“Uganda’s largest share of petroleum products arrives in the country through Kenya. Next week, I want to move a motion asking Parliament to make a resolution asking the minister to give a plan for the Kenya elections. What plan is there in the case of post-election violence?” Mwijukye asked. 

He also tasked the energy minister to present a statement on steps being taken to address skyrocketing fuel prices. 

“High prices affect the cost of doing business, education, and transport,” he said