Uganda Out Of Fuel

Posted by: Kyeyune Andrew Jonathan in Business October 31, 2017

Uganda could be headed for a fuel scarcity should neighbouring Kenya burst into post electoral violence following a just concluded controversial presidential election.

Check also: Uganda Could Get Rich On Oil, According To World Bank

The Uganda National Oil Company (UNOC) responsible for the fuel reserves in the country says there is only 13 million liters available. The 13 million accordingly can last us for a maximum of 14 days.

The general manager, National Pipeline Company, Mr John B Habumugisha says the only way to avert the crisis will be through opting for Tanzania route.

“The route to Tanzania is long, this means that fuel prices will increase dramatically,” Habumugisha says.

Some petrol stations have already taken the advantage they have increase the prices slightly by 50 to 200 shillings. The taxi drivers and bodaboda motorists have already increased the prices by 500 shillings.

In a statement to Parliament in August, Energy Minister Irene Muloni said that Uganda’s preparedness in case of fuel shortage hinges on the effectiveness of import routes through ports of Mombasa and Dar es Salaam as well as fuel stock levels at various in-country storage facilities.

Muloni said that Tanzania’s capital is Uganda’s only alternative route should the country be affected.

Muloni added that the resultant pipe price would be slightly higher (by about Shs85 per littre) given that the unit cost of importing through Dar es Salaam route is about $138 per littre as compared to $115 through Kenya. She however indicated that the country can survive the scarcity for at least 16 days using in-country stock.

The assistant commissioner for petroleum supply in the Ministry of Energy and Mineral Development, John Friday, in July said the country has capacity to maintain fuel stock for about 10 days.

Kenya is one of the entry points of the east African merchandise any political chaos has a great impact on the east African economy.

In 2007, there was scarcity of fuel, the major petrol stations in the country were flooded with clients yet the supply was very low. Some Ugandans opted to leave their cars at home.

The IEBC yesterday declared Kenyatta President-elect after garnering 7,483,895 votes (98%) in the repeated election boycotted by main rival Raila Amolo Odinga.

Speaking after he was declared, Kenyatta cast doubt on the situation that could follow the election. He called for calm and unity.

However, Kenyatta’s rival, Odinga said he will not allow him rule as president if the IEBC declares him.

“We’re not going to go for violent confrontation with government. We’re going to do peaceful resistance, not through demonstrations but through other methods,” Raila said in an interview with CNN on Friday.

The Opposition chief said that the movement will announce in detail the measures they are going to take on Monday to force government to step aside.

“On Monday, we are going to announce a series of measures that we’ll take in order to bring pressure on this government to step aside,” he said.

Source: nile post

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