STATEMENT ON THE ESCALATING FUEL PRICES AND THE SUPPLY

STATEMENT ON THE ESCALATING FUEL PRICES AND THE SUPPLY


DISRUPTIONS AT MALABA AND BUSIA BORDER POINTS

1. Uganda is a net importer of petroleum products in a liberalised downstream petroleum market with an average current daily consumption of 6.5 million litres. Uganda loads its products through the terminals located in Eldoret, Kisumu, Nairobi and Mombasa, and supply is majorly through road transport

2. Supply was normal, with trucks being cleared as usual, and drivers were allowed to present negative COVID-19 results from Kenya until 14 January 2022, when a directive was issued requiring all truck drivers to undergo testing at Malaba and Busia entry points. This resulted in a buildup of trucks as none were entering the country.

3. Following the failure to maintain replenishment of stocks and where trucks had spent 10 days in the queue, the turnaround time was affected and reduced stocks for Petroleum products in the country.

4. As of 12th January 2022, the Ministry of Health commenced free COVID-19 testing at the Malaba and Busia burder points. The trucks started moving, and the pace of the truck movement started improving,

5. With the full opening of economic activities, there has been an increase in uptake of Petroleum Products, which saw a spike in consumption in the country that affected the daystock levels. The very low replenishment based on the truck delays at the borders resulted in some stock out of Petrol at some outlets.

6. Uganda's Oil Marketing Companies have most of their trucks in the traffic between the Kenya loading points and the borders, and once cleared in a few days, supply and prices will return to normal, and there is no need for the public to panic.

7. Speculators hoarding petroleum products and leading to an unnecessary hike in fuel prices are advised to desist from this bad practice. The price of Petrol in the country should not exceedUGX. 5,000 per litre. The cases of scarcity in districts such as Hoima will be addressed shortly with the ongoing replenishment.

8. The government is doing everything possible to prioritise the handling of Petroleum Products at the borders to ensure build up in-stock levels in the country.

MINISTRY OF ENERGY AND MINERAL DEVELOPMENT


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