Uganda National Oil Company (UNOC) has begun distributing limited quantities of petroleum products to its subsidiaries in Tanzania and Uganda.
Uganda’s fuel distribution network is currently dependent on Kenya, importing roughly $2 billion worth of petroleum per year, for which Kenya Pipeline Company handles at least 90% of the cargoes.
As a result, UNOC has signed a five-year supply deal to import fuel directly from energy trader Vitol Bahrain for distribution to consumers.
Last November, Ugandan President Yoweri Museveni signed the Petroleum Supply (Amendment) Act into law, granting UNOC exclusive rights over the importation of petroleum products into the country.
Tanzania has extended an offer to UNOC for the use of the Port of Dar es Salaam for its fuel importation needs.
