The government has given private enterprises permission to continue importing petroleum products into the nation. This action is intended to avoid future gasoline shortages and sharp rises in pump prices as a result of the current impasse with Kenyan fuel dealers.
Many motorists consider this as a positive development since it ensures a continuous supply of fuel until the trade dispute is decided in a regional court. The conflict with Kenyan traders has slowed official preparations for the Uganda National Oil Company (UNOC) to take over monopoly gasoline imports, as stipulated by a new legislation passed last year.
Officials and UNOC representatives have stated that this move is only a temporary solution to the anticipated interruptions in the gasoline delivery chain. The license for private dealers is granted under a clause in the recently approved petroleum law designed to save the country from suffering a catastrophe if supply shortages occur.
According to Ms. Irene Batebe, Permanent Secretary of the Energy Ministry, Uganda would continue to use the Kenyan importation mechanism until the government obtains authorization for UNOC importation from Kenya. UNOC was intended to begin sole importation this month, but had difficulties securing a critical Petroleum Import License from Kenya.
While the issue is being settled bilaterally, three Kenyan companies filed a lawsuit in Machakos High Court to prevent UNOC from acquiring the license. Uganda’s Attorney General replied by referring the case to the East African Court of Justice (EACJ), citing the East African Community Treaty’s free trade provisions.
Mr. Peter Muliisa, UNOC’s head of Legal and Corporate Affairs, stated that the ongoing issue has caused a delay in the intended monopoly acquisition, extending the projected date to late February or March pending the court’s ruling.
