Changes Loom for Oil Marketing Companies in Uganda

Oil marketing companies in Uganda are facing upcoming changes to the Petroleum Supply Act that will require them to rely on the Uganda National Oil Company (UNOC) for their supply. While these changes are on the horizon, industry players have expressed cautious optimism, provided the government fulfills its obligations.

Currently, fuel prices at pump stations in Kampala average 5600 shillings per liter for petrol and 5400 shillings for diesel. If the proposed amendments to the Petroleum Supply Act are approved, significant changes in the industry will follow.

Dan Mushabe, the General Manager of Mount Meru, an oil marketing company, highlights some of the anticipated changes and the potential benefits for customers.

The process of fuel importation involves several steps, including marking and tax valuation, each of which carries cost implications. Industry players are emphasizing the need to address these issues.

Uganda consumes an average of 7 million liters of fuel per day, and the government aims to maintain a consistent fuel supply for the country. However, concerns remain about the potential impact of these changes.