Uganda, Kenya In Talks Over ‘Terrible’ Fuel Restrictions Likely To Double Prices

Uganda, Kenya In Talks Over ‘Terrible’ Fuel Restrictions Likely To Double Prices

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By Spy Uganda

Uganda is in talks with Kenyan over the latter’s decision to restrict the allocation of fuel to neighbouring countries amidst the global fuel crisis.

The Minister of State for Energy and Mineral Development, Hon. Sidronius Opolot Okasai during the parliamentary sitting on Wednesday, 11 May 2022 called for calm as Uganda engages Kenya over the trade restriction that is likely to worsen fuel prices in Uganda.

“The Ministry of Energy and Mineral Development is aware of the directive issued by the Government of Kenya. This is a very important matter to the two brotherly states of Kenya and Uganda. I wish to request the House to allow the high-level negotiations to proceed as we keep you updated on the outcomes,” Okasai said.

The minister was responding to a concern raised on the floor of Parliament last week by Hoima East Division MP, Hon. Patrick Isingoma Mwesigwa regarding Kenya’s recent decision to restrict the allocation of shares of fuel to neighbouring countries so as to address fuel outages in their own local market.

According to Okasai, the Kenyan government has directed oil marketing companies to ration the supply of fuel in favour of Kenya’s internal use.

Apparently, Kenya will retain 60 per cent of the fuel for its internal use and allow transportation of only 40 per cent to other neighbouring countries.

On 05 May 2022, Hon. Isingoma informed the House how the Kenyan Government has decided to localise two ships; MT Campo, which carries about 133.5 million litres of petrol and MT Elka Athina which carries about 104.7 million litres of diesel with the purpose of restricting the supply of fuel to other countries.

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