President Yoweri Museveni defended the government’s choice to buy petroleum directly from refineries rather than intermediaries on Sunday, November 5, claiming that Ugandans were experiencing large losses.
Museveni stated in a message on X, previously Twitter, that the issue of high import gasoline costs had been brought to his notice, and he had asked the right officials to solve it, but they had irritated him.
The President questioned why the whole country would buy from intermediaries in Kenya or elsewhere.
“Why not buy from overseas refineries and transport through Kenya and Tanzania, eliminating the cost of middlemen?” “These issues did not bother those involved,” Museveni remarked.
“I learned about this information from whistleblowers a few years ago.” I delegated responsibility for the problem to Minister Goretti Kituttu (former Minister of Energy and Mineral Development). I learned about a year ago that the situation had never been resolved. “When I researched the issue, I discovered that we lose a lot of money by buying through middlemen,” Museveni explained.
The President also detailed the prices charged by bulk suppliers and middlemen per tonne, stating that for diesel, the price from the middlemen was $118 (sh448,400), while the price from bulk suppliers or refiners was $83 (315,400); for petrol, the price from the middlemen was $97.5 (sh380,500), while the price from bulk suppliers or refiners was $61.5 (sh233,700); and for kerosene, the price from the middlemen was $1
The President also detailed the prices charged by bulk suppliers and middlemen per tonne, stating that for diesel, the price from the middlemen was $118 (sh448,400), while the price from bulk suppliers or refiners was $83 (315,400); for petrol, the price from the middlemen was $97.5 (sh380,500), while the price from bulk suppliers or refiners was $61.5 (sh233,700); and for kerosene, the price from the middlemen was $1
Museveni’s remarks follow Cabinet approval of changes to the petroleum law that will allow Vitol to exclusively supply the state-owned Uganda National Oil Company (UNOC) with fuel at subsidized prices, dealing a heavy blow to Kenyan middlemen who have supplied 90% of Uganda’s oil.
Last week, Energy Minister Ruth Nankabirwa announced that Vitol and UNOC had already signed the contract, with the first exclusive deliveries due in January.
Nankabirwa, energy ministry permanent secretary Irene Batebe, and assistant commissioner petroleum supply John Friday headed to Tanzania on Friday for a meeting with their colleagues about the transaction.
President Museveni’s complete statement;
Fellow Ugandans, particularly the Bazzukulu.
Greetings.
I’d want to discuss a few concerns with you. Let me begin with the kuseerwa (overcharging) for imported petroleum items. We anticipated that the Civil Servants would deal with money, administration, procurement, and so on, while we would deal with policy, philosophy, strategy, security, and so on.
However, in a lot of instances, these good people have failed their nation. Consider the importation of petroleum products. Uganda imports 2.5 billion gallons of petroleum products each year, worth around US$ 2 billion.
Without my awareness, our amazing people were purchasing a large number of petroleum items via Kenyan intermediaries. A entire country purchasing from intermediaries in Kenya or elsewhere!! It’s unbelievable, but it’s real.
Why not buy from overseas refineries and transit through Kenya and Tanzania, eliminating the expense of middlemen? These difficulties did not disturb anyone concerned.
I learned about this information from whistleblowers a few years ago. I delegated responsibility for the situation to Minister Kituttu. I learned about a year ago that the situation had never been resolved. When I researched the subject, I learned that we lose a lot of money by buying through middlemen.
A check a few months ago revealed that the intermediaries were selling us petroleum products at the following per tonne prices:
Middlemen’s price for diesel is $118.
-$83 from bulk suppliers or refiners;
Middlemen’s pricing for gasoline is $97.5; bulk suppliers’ or refiners’ price is $61.5.
Middlemen’s pricing for kerosene is $114; bulk suppliers or refiners’ price is $79
These are the prices at which the merchandise landed in East African ports. You can see the enormous loss Uganda has suffered as a result of our lovely people.
We have now negotiated with bulk and refinery suppliers that can provide us reduced costs. I discussed it with H.E. Ruto, Kenya’s President, and our delegation is presently in Dar es Salaam, meeting with Her Excellency Samia Suluhu.
Internal parasites who have been defrauding their nation, on the other hand, have begun a social-media and mainstream media campaign against our liberation-resistance strategy against okuseerwa (being overcharged), aided by the ever-pro-parasite Monitor. As is customary, we are prepared to meet the parasites.
H.E. Ruto is in charge of the Kenyan component. I applaud his contribution. Our Refinery will be operational in a few years. I can ensure inland East Africans of competitive petroleum products free of middleman distributors.
Uganda, North-Western Tanzania, Rwanda, Burundi, Western Kenya, South Sudan, and the Eastern Democratic Republic of the Congo will all gain. Down with misinformation on social media and in the mainstream media.
Yoweri K. Museveni Gen (Rtd) Ssaabalwanyi signed.
