Overview:
Uganda dragged Kenya to the East Africa Court of Justice (EACJ) seeking an order to compel Kenya to issue the license to Uganda National Oil Company.
The government of Uganda is considering importing its petroleum products through Tanzania as Kenya continues to deny the Uganda National Oil Company a licence to set up office in their country.
Uganda last year amended the Petroleum Supply Act of 2008 to grant exclusive rights to Uganda National Oil Company to directly manage petroleum imports. Consequently
UNOC entered an agreement with VITOL Energy Limited to import petroleum products directly from the refineries overseas.
Uganda National Oil Company then applied to Kenya’s Energy and Petroleum Regulatory Authority (Epra) for a license to allow it to operate as a local oil marketer. Kenya’s Energy and Petroleum Regulatory Authority then demanded that UNOC meet several conditions, which Uganda opposed, saying they were not necessary.
Uganda dragged Kenya to the East Africa Court of Justice (EACJ) seeking an order to compel Kenya to issue the license to Uganda National Oil Company.
As the matter awaits ruling in the court, Energy Minister, Ruth Nankabirwa on Tuesday, 23 January 2024, said she met the Tanzanian President, Samia Suluhu Hassan with a message from President Museveni over the matter.
“UNOC was to commence the importation in Jan 2024 but due to a court suit challenging our application for a license to transport fuel products in Kenya,this was not achieved. Government escalated the dispute to the East Africa Court of Justice (EACJ) where we expect a ruling,” she said.
Nevertheless, the minister said she had similar engagements with the President of Kenya, William Ruto, and his Cabinet Secretary in charge of Energy and Petroleum, David Chirchir, over the matter.
“I assure you that the Government of Uganda remains committed to the sustainable development of the nation’s oil and gas resources, thereby playing a pivotal role in our journey towards poverty eradication,” she added.
The minister revealed that there is the possibility of a negotiation with the government of Tanzania to remove some taxes on fuel imports so that Uganda imports its fuel from Tanzania.
Uganda predominantly imports its petroleum, with over 90% through Mombasa, supplemented by imports via Dar-es-Salaam port.