Uganda Seeks New Oil Import Route via Tanzania

Uganda Seeks New Oil Import Route via Tanzania

Uganda is in negotiations with Tanzania to establish an alternate route for importing oil products through the port of Dar es Salaam. This shift from importing through Kenya's Mombasa port stems from Uganda's dissatisfaction with the current system. Ugandan fuel companies have been primarily purchasing supplies from affiliated firms in Kenya, a system that President Yoweri Museveni believes has led to supply disruptions and inflated prices.

In November, Uganda announced plans to grant exclusive rights to Vitol, a global energy trader, for the supply of petroleum products. Initially, the plan was to continue importing through Kenya; however, the Kenyan government declined to grant the required license. This has led Uganda to explore alternative options, with Tanzania emerging as a potential import route.

Uganda's Energy Minister, Ruth Nankabirwa, has emphasized the need to secure a reliable path for petroleum imports to ensure supply stability. The government is currently engaged in negotiations with Tanzania's government to finalize the arrangements. Both the Kenya Energy and Petroleum Regulatory Authority and Tanzanian officials have yet to provide comments on the matter.