President Yoweri Museveni has revealed that a Kenyan senator alerted him to Uganda’s reliance on middlemen when purchasing petroleum products, prompting changes that he says significantly reduced fuel procurement costs.
Museveni made the remarks on Thursday, September 17, while breaking ground for the 320-million-litre Kampala Storage Terminal in Mpigi District. The facility, being developed by the Uganda National Oil Company (UNOC), is intended to strengthen the country’s strategic petroleum reserves.
Reflecting on his government’s approach to administration since taking power in 1986, Museveni said he had initially relied heavily on technocrats to manage government institutions.
“When we took over Government in 1986, we entrusted administration to technocrats. However, it took a Kenyan Senator to alert me that Uganda was buying petroleum products through middlemen in Kenya. Unbelievable!” Museveni said.
The President said his intervention following the revelation resulted in changes to Uganda’s petroleum procurement arrangements. He attributed the changes to substantial reductions in the costs associated with importing key petroleum products.
“After intervention, Diesel has come down from USD118 to USD83 per metric tonne, Petrol from USD97.5 to USD61.5 and Aviation fuel from USD114.25 to USD79.25,” he said.
Museveni did not identify the Kenyan senator who brought the matter to his attention. Reports indicate Uganda subsequently increased UNOC’s role in directly importing petroleum products, reducing reliance on intermediaries.
The President linked the procurement changes to Uganda’s broader strategy of strengthening control over its petroleum supply chain as the country advances its oil and gas development plans.
He said adequate storage would be critical as Uganda develops its petroleum resources and seeks protection against supply disruptions.
“Today, I broke ground for the 320-million-litre Kampala Storage Terminal in Mpigi. As we develop our petroleum resources, we must strengthen our strategic reserves,” Museveni said.
The new terminal is expected to significantly expand Uganda’s storage capacity. Officials say Uganda consumes about 240 million litres of petroleum products each month, while the new facility will complement existing storage infrastructure, including the Jinja terminal.
Museveni also highlighted regional cooperation, saying Tanzanian President Samia Suluhu Hassan had sent a delegation as Uganda works with Tanzania and other East African countries to strengthen petroleum security.