Uganda has initiated consultations with Tanzania to allow the Uganda National Oil Company (UNOC) to handle fuel imports after facing challenges in obtaining a license as a local oil marketer in Kenya. Energy and Mineral Development Minister Ruth Nankabirwa confirmed the discussions, revealing that she met Tanzanian President Samia Suluhu Hassan with a message from President Museveni.
The move comes after Kenya declined to issue a license to UNOC, leading Uganda to explore alternative routes for fuel imports. Minister Nankabirwa expressed the possibility of negotiating with the Tanzanian government to remove some taxes on fuel imports, enabling Uganda to import fuel from Tanzania.
Efforts to secure a stable and efficient supply of petroleum products are in advanced stages. An amendment to the Petroleum Supply Act of 2008 empowers UNOC in partnership with VITOL Energy Limited. The fuel marketing standoff with Kenya began in November last year when Uganda sought to register UNOC as a local marketer, aiming to eliminate middlemen in Kenya.
