Uganda’s attempt to reduce fuel prices by directly importing from Vitol Bahrain has failed, with prices in Kampala rising above Nairobi’s. Despite President Museveni’s promise to cut out middlemen in Kenya, diesel now costs $1.38 per liter and petrol $1.47 in Kampala, surpassing Nairobi’s rates of $1.32 and $1.45 respectively.
Uganda National Oil Company’s deal with Vitol Bahrain aimed to lower pump prices by eliminating intermediaries, but has not reflected in retail prices. The first shipments of petrol and diesel under this deal have arrived and are currently being sold in Uganda. The city has become the most expensive for fuel in East Africa, raising concerns about the efficacy of the procurement strategy.
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