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Uganda diversifies oil import routes to meet demand

Uganda is looking to the ports of Mombasa and Dar es Salaam as import routes to ensure the country has an adequate supply of oil. It is a way, officials say, of avoiding the mistakes of the past, when shortages were caused by problems with delivery schedules.

Barely a month after Uganda imported its first oil through the port of Mombasa, Kampala is still struggling to meet its limits. This scenario has forced the Uganda National Oil Corporation (Unoc) to supplement the volume through Tanzania, even if it costs more.

Kampala says the Dar addition will help it meet its demand for more than 174,000 metric tonnes (MT) of oil under the Petroleum Products Supply Agreement between Vitol Baharain and Unoc.

Unoc Chief Corporate Affairs Officer Tony Otoa said the country's move to import part of its oil through Tanzania was to ensure it had adequate monthly stocks of 80,000 MT of petrol, a similar amount of diesel and 14,000 MT of Jet-A1 and kerosene.

"We are struggling with the limits set in Kenya. And Unoc going to Dar es Salaam has nothing to do with cost, we just need to make sure that our demand is met at all times to make sure we have the needed monthly stocks,” he said.

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