The Chief Executive Officer of the Uganda National Oil Company (UNOC), Proscovia Nabbanja met with Commissioner General John Musinguzi to share progress on UNOC’s plan to be the sole supplier of petroleum products in the country.
According to Nabbanja, UNOC intends to replace the current Kenya open tender system such that Kenyan suppliers only supply to Kenya and oil companies in Uganda source from UNOC.
This meeting was a follow-up of the presidential directive that allowed UNOC to be the sole importer of petroleum products in light of the election instability in Kenya that caused delays in the movement of goods, including petroleum products which caused fuel prices to shoot up.
The government envisages the move will stabilize stocks and prices while opening a new revenue stream for Uganda.
Nabbanja called for a meeting among URA, KRA and UNOC to discuss the tax implications, documentation required and support to ensure the success of the project.
Musinguzi commended UNOC on the progress and asked them to minimize the inefficiency in the open tender system once they take over.
He noted that fuel is the biggest contributor to customs revenue and asked the team to maintain the current arrangement of paying taxes before fuel exits the port in Mombasa.
“I hope you are aware of the arrangement with the current suppliers, who pay all their taxes before fuel leaves Mombasa. So, as you sign up, beware of the arrangement so that you don’t disrupt the revenue collection,” Musinguzi affirmed.
He also pledged to support and work closely with the team, adding that petroleum is the heartbeat of revenue.