Uganda has asked Kenya to allocate it a fixed monthly amount of fuel supply, seeking to alleviate shortages that have driven pump prices higher.
Uganda wants 110,660 cubic meters of gasoline, 110,400 cubic meters of diesel, and 12,000 cubic meters of aviation fuel shipped through Kenya monthly to meet demand that’s rebounded with the reopening the economy after easing pandemic-related restrictions,
Gasoline pump prices in Uganda have risen by about 19% since the start of the year to an average of 5,300 shillings ($1.51) per litre in Kampala. According to the Ministry, the country consumes about 6.5 million litres of fuel daily.
Uganda accounts for 75% of fuel transiting through Kenya.
In the recent weeks, Oil Marketing Companies in Kenya have been accused of increasing the share of fuel they sell to the neighbouring countries of Uganda, Rwanda and DR Congo to over 60% from the previous 40% of total imports to ease their cash crunch. This further cut supply In Kenya as the neighbouring countries enjoyed normalcy, prompting EPRA (Energy and Petroleum Regulatory Authority) to threaten them with reduced import quotas.
See Also:
