Uganda is set to break Kenya’s oil monopoly as two tankers carrying the first petroleum products directly imported by Uganda will dock at the Mombasa port next week. The move follows a deal between Uganda National Oil Company (Unoc) and Vitol Bahrain to lower pump prices in Uganda below those offered by Kenyan dealers. Unoc’s Chief Corporate Affairs Officer, Tony Otoa, confirmed that two vessels are scheduled to arrive on July 2nd, carrying a total of 70,000 tonnes of fuel.
The agreement between Uganda and Kenya will see the use of Kenya Pipeline Company (KPC) facilities to transport the fuel to Uganda, benefiting both countries. The Kenya Ports Authority (KPA) has pledged to provide efficient services to accommodate increased fuel throughput to Uganda. With Kenya’s capable infrastructure, such as the KOT2 terminal, the handling of large volumes of petroleum products is a smooth process.
Uganda’s decision to import directly through Kenya instead of Tanzania was influenced by Kenya’s port investment and proximity. The move signifies a step towards energy security and better pricing for Uganda while maintaining good relations with neighboring countries.
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