Uganda’s president Yoweri Museveni has cleared up the air concerning the cancellation of the petroleum sourcing deal with Kenya.
In a statement on Sunday, November 5, Museveni noted that Ugandans were getting fuel from middlemen in Kenya who were selling the petroleum products at a very high price.
As a result, this led to an increase in fuel prices in the country.
Further the Head of State faulted civil servants in Uganda for the blunder adding that the move to purchase petroleum products from middlemen in Kenya was done without his knowledge.
In addition, Museveni noted that he came to the realization of the situation about a year ago but when he delegated the issue to a lawmaker, it was never dealt with.
“Without my knowledge, our wonderful People, were buying this huge quantity of petroleum products from middlemen in Kenya. A whole country buying from middlemen in Kenya or anywhere else!!” he stated.
“Why not buy from the Refineries abroad and transport through Kenya and Tanzania, cutting out the cost created by middlemen? Those involved were not bothered by these issues,” Museveni added.
Also Read: Museveni Ditches Kenya as Ruto’s Deal Increases Fuel Prices in Uganda
Museveni Details a Spot Check on Uganda Buying Fuel from Kenyan Middlemen
Museveni stated that a few months prior, Kenyan middlemen were selling diesel to Ugandans at Ksh17,829 ($118) compared to the prices of bulk suppliers which was Ksh12,541 ($83)
On the other hand, Petrol was Ksh14,732 ($97.5) from Kenyan middlemen and Ksh9,292 ($61.5)
“These are prices when the products have arrived at the East African Ports. You can see the huge loss Uganda has been incurring on account of our wonderful People,” he added.
Uganda Reaches Out to Ruto
At the same time, the head of state noted that he had reached out to President William Ruto concerning the issue adding that his government had made the decision to get petroleum from bulk suppliers.
His decision to contact Kenya and Tanzania he added, was because they were working on opening up a refinery within the East African nations.
Further, he said that there was a lot of misinformation concerning the matter perpetuated by Ugandan media.
“I have discussed this with H.E Ruto, the President of Kenya and our delegation is now in Dar-es-Salaam, discussing with Her Excellency Samia Suluhu.
“Ruto is handling the Kenyan part. I salute his contribution. In a few years’ time, our Refinery will be up and running. The whole of Uganda, North- Western Tanzania, Rwanda, Burundi, Western Kenya, South Sudan and Eastern DRC, will benefit,” he revealed.
Also Read: 10 Items that are Cheaper in Uganda than Kenya
Uganda Opting out of Fuel Deal with Kenya
Earlier on Tuesday, October 31, the Ministry of Energy and Mineral Development in Uganda sated that the government-to-government deal initiated by President William Ruto, to replace the Open tender System, ah resulted in Uganda’s Oil Marketing Companies (OMC) being sidelined in Kenya.
Additionally, the statement indicated that the move by the Kenyan government led to an increase in fuel prices in Uganda because the Ugandan oil marketing companies bought fuel at higher prices.
They would therefore stop buying petroleum products through the port of Mombasa in Kenya.
