Uganda Agrees Petroleum Importation Deal with Bahrain Firm

Uganda’s energy minister introduced a bill in parliament on Wednesday seeking to grant Bahraini corporation Vitol exclusive rights to be the country’s sole importer of petroleum products.

The modifications to the petroleum law have already been accepted by Uganda’s cabinet.

Petroleum product importation and marketing have generally been liberalized, with various private firms active in the business, primarily sourcing the products from neighboring Kenya.

According to Uganda’s energy ministry, the scheme has exposed the landlocked country to supply disruptions and high pump prices.

A agreement has already been struck between the state-owned Uganda National Oil Company (UNOC) and Vitol energy.

Vitol will deliver oil products to the Uganda National Oil Company, which would then sell them to petrol station operators. Vitol’s first shipment is scheduled to arrive in January.

However, certain oil marketing corporations have attacked the agreement, accusing the Ugandan government of attempting to establish a monopoly.

According to Uganda’s central bank, the government will import $1.6 billion in petroleum products in 2022.

Written by PH

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