President Yoweri Museveni has credited former Kenyan politician Cyrus Jirongo and President William Ruto with helping Uganda change its petroleum procurement arrangements and reduce the premiums paid on imported fuel.
In a statement marking his 82nd birthday, Museveni said Jirongo alerted him around 2019 that Uganda was purchasing petroleum products through middlemen in Kenya at higher costs. He said the information prompted him to question the country’s fuel procurement arrangements and direct officials to address the issue.
Museveni said the procurement system was later changed, with Uganda linking up with Vitol in 2023 to source petroleum products in bulk. Under the arrangement, he said the premium on diesel fell from US$118 to US$83 per metric tonne, while petrol dropped from US$97.50 to US$61.50. The aviation fuel premium also fell from US$114.25 to US$79.25.
The President also thanked Ruto for what he described as helping Uganda overcome resistance from some actors in Kenya. He said Kenya subsequently allowed Uganda to transport its petroleum products through the Kenyan pipeline, while Uganda acquired a 20.15% shareholding in the pipeline system.
The shift has been part of Uganda’s broader effort to give the Uganda National Oil Company (UNOC) a greater role in importing petroleum products directly from bulk suppliers. Uganda’s Parliament had earlier noted that UNOC entered into an agreement with Vitol to supply petroleum products to the Ugandan market.
Museveni’s latest remarks highlight the changing fuel-supply relationship between Uganda and Kenya, with both countries continuing to rely on Kenyan infrastructure for the movement of petroleum products from the coast into the region.
