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, which requires Ugandan fuel companies to purchase 90% of their supplies through affiliated firms in Kenya.
President Yoweri Museveni has expressed concerns that this system exposes Uganda to supply disruptions and inflated pump prices. In response, Uganda announced in November that it would grant exclusive rights for the supply of all petroleum products to a unit of global energy trader Vitol.
Initially, Uganda planned to continue importing oil products through Kenya, but the Kenyan government declined to grant the necessary license. As a result, Uganda is now negotiating with Tanzania to establish an alternative import route.
The Ugandan government is seeking a route that will ensure a secure and reliable supply of petroleum products. The technical teams of Uganda and Tanzania are currently engaged in discussions, and the Ugandan Energy Minister is scheduled to meet with the Tanzanian President to further explore this option.