Fuel companies have said the current reduction in pump prices in the country can only be credited to the Uganda National Oil Company’s move to be the sole importer of petroleum products into the country.
“We appreciate government’s initiative that saw UNOC become the sole importer of fuel and give to us. Currently all fuel marketing companies in Uganda source their products from UNOC which participates on our behalf. This has ensured the cost of products go down by removing middlemen. Because of this, you can see that pump prices have gone down,” Justus Kiptoo, the general manager for Stabex International Uganda told journalists on Tuesday.
Previously Ugandan fuel companies were at liberty to buy from any middleman but in the new arrangement, UNOC buys fuel on their behalf.
In May, Uganda and Kenya signed key agreements, which paved the way for UNOC to utilise Kenya Pipeline Company facilities to import petroleum products into
UNOC will be able to link the supply chain performance of product imports and the distribution being made within the country by the OMCs and this will streamline product import planning with the distribution in-country and the timely activation of the mitigation plans for countering the supply interruptions.
In July, the first shipment of 78 million litres of petrol and 65,000 tons of diesel was successfully received by UNOC.
Speaking on Tuesday, the Stabex Uganda General Manager said with over 150 retail stations around the country, they have greatly benefitted from the deal of sole importation by UNOC.
He said they expect pump prices to further go down.
