Home East Africa Uganda appoints Bahrain company as sole supplier of petroleum products

Uganda appoints Bahrain company as sole supplier of petroleum products

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Uganda’s energy minister recently tabled a bill before parliament seeking to grant exclusive rights to Bahraini company Vitol to be the sole importer of petroleum products into the East African country by effecting changes to the petroleum law

Uganda’s energy minister recently tabled a bill before parliament seeking to grant exclusive rights to Bahraini company Vitol to be the sole importer of petroleum products into the East African country by effecting changes to the petroleum law.

However, some oil marketing companies have criticized the deal, accusing the Ugandan government of seeking to create a monopoly. Uganda imported USD 1.6 billion worth of petroleum products in 2022, according to the country’s central bank.

The importation and marketing of petroleum products has generally been liberalized enabling several private entities involved in the business, mainly sourcing the products from neighboring Kenya. Uganda’s energy ministry said in a statement that the system has exposed the landlocked country to supply disruptions and high pump prices.

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A deal between the state-owned Uganda National Oil Company (UNOC) and Vitol Energy is already in place.  Under it, Vitol will supply oil products to Uganda National Oil Company which will in turn sell the products to petrol station operators. The first shipment from Vitol is expected to arrive in January.