Uganda Shifts Oil Imports to Tanzania, Ending Reliance on Kenya

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Uganda Shifts Oil Imports to Tanzania, Ending Reliance on Kenya

Uganda is exploring the possibility of importing all its oil products through Tanzania's Dar es Salaam port, potentially ending its reliance on Kenya's Mombasa port. This move stems from Uganda's dissatisfaction with the current system, where Ugandan fuel companies primarily purchase supplies through affiliated firms in Kenya.

President Yoweri Museveni has expressed concerns about this arrangement, citing potential supply disruptions and inflated pump prices. In response, Uganda announced plans to grant exclusive supply rights to a unit of Vitol, a global energy trader.

Initially, Uganda intended to continue importing products through Kenya, but the Kenyan government declined to grant the necessary license. Consequently, Uganda has initiated negotiations with Tanzania to establish an alternative import route.

The Ugandan Energy Minister, Ruth Nankabirwa, emphasized the importance of securing a reliable supply route for petroleum products. She stated that technical teams are engaged in discussions with Tanzania, and she plans to meet with the Tanzanian President to further explore this option.

Kenyan and Tanzanian officials have not yet provided any official statements regarding Uganda's request.