Why Uganda Opted for Costly Tanzania Oil Route Amid Ongoing Case Towards Kenya

Ugandan Minister for Power Ruth Nankabirwa has defined why her authorities opted to import oil by means of Tanzania forward of a ruling on its diplomatic tiff with Kenya.

Whereas addressing the nation on the progress of the nation’s oil and gasoline sector, the minister acknowledged that the Tanzania route can be dearer than the Kenyan one.

Nevertheless, she maintained that their choice was knowledgeable by the necessity to stop a possible gas scarcity disaster.

Uganda’s plan to begin importing oil by itself in January this 12 months was hampered by the Power and Petroleum Regulatory Authority (EPRA) which declined to award it a certificates for enterprise.

Uganda therefore sued Kenya on the East African Court docket of Justice (EACJ), in search of to be granted a licence to function as an Oil Advertising and marketing Firm (OMC). 

Alternatively, she famous that Tanzania was prone to waive taxes for Uganda, making the route extra viable in the long term.

“We’re ready for any emergency disaster, making certain uninterrupted provide. I’ve already began engagement with the President of Tanzania to be sure that the nation is safe when it comes to provide.

“You can not sit there and be on the mercy of 1 individual. We all know that the choice route is likely to be costly due to the logistics concerned however we additionally know that there’s a risk of negotiation with the federal government of Tanzania to waive some taxes in order that their sister nation can have the ability to do enterprise,” she acknowledged.

Alternatively, the Minister expressed that they might proceed to pursue the pursuits of its residents at the same time as they await the courtroom ruling subsequent month.

“The ultimate ruling of the courtroom case is predicted to be made on January 22 however was deferred to February 12. We’re in courtroom, not as a result of we needed to however as a result of the government-only oil firm was denied a certificates by EPRA,” she added.

Uganda, by means of the Petroleum Provide Modification Invoice 2023 authorised the Uganda Nationwide Oil Firm (UNOC) to import oil with out utilizing Kenyan middlemen. 

The invoice which handed in December 2023, thus made UNOC the one firm authorised to import oil straight from the refineries.

Uganda had accused Kenyan corporations (middlemen) of prioritising income on the expense of cheaper pump costs for Ugandans