Ugandans are praying that the presidential elections in Kenya next month will end peacefully to allow the country have a steady supply of cheaper fuel from refineries and storage facilities in Kenya.
According to some Ugandans, there is fear that chaos that erupted in Kenya in 2007 and 2013 following disputed presidential elections could resurface to haunt the country economically through increased prices of goods and services.
“The chaos that arose in the last two general elections in Kenya affected Uganda’s fuel imports which led to the rise in prices of goods and services,” said an economist in Kampala, warning government and private players to be on the alert and ensure that the country has sufficient fuel reserves.
The public concern comes after the Energy Minister Eng. Irene Muloni told Parliament that government has only 30 million litres of fuel in its storage facilities at Jinja in eastern Uganda.
However, the Minister said that private players currently have 54 million litres of fuel in store and that the government would add 30 million more litres of fuel in readiness for the upcoming Kenyan elections, slated for August 8.
She however, noted that the 84 million litres of fuel can only take 16 days, leaving the country in a crisis in case no more supplies arrive in time.
Some of the private companies that import fuel into Uganda include among others Vivo Energy, Petrocity, Delta Petroleum, Total and City Oil, and by press time it was not clear whether the companies had placed more orders in relation to the Kenyan electoral process.
Meanwhile, according to Minister Muloni, the average fuel prices in Uganda today compare fairly with the prices in Kenya, Tanzania and Rwanda. On average, she said, a litre of diesel, petrol and kerosene goes for Ushs3, 000, Ush3, 600 and Ush2, 600, respectively.
‘Fuel price fluctuations in Uganda arise out of the cost of crude oil on the international market, transportation costs and the unstable currency exchange rates,’ Minister Muloni said in the statement to Parliament.
In the region, on average a litre of petrol in key selected regions in Kenya costs Ksh100.225. In Tanzania and Rwanda a litre of the same costs Tzsh2, 014 and Rwf985. A unit of each of the currencies of Kenya, Tanzania and Rwanda is equal to Ush34.90, Ush1.6 and Ush4.4, respectively.
The fuel imported in Uganda in various forms finds its use in sectors such as transportation, industry, energy, government. Also, the fact that most Ugandan households are not connected to the national electricity grid, kerosene is an important source of lighting.
Muloni says, for these purposes, her ministry has plans to ensure the availability of the fuel through Tanzania should the Kenyan election become marred by the violence.
“We are ready to continue doing everything possible to ensure a steady supply of petroleum products to the country,” she told the MPs, majority of them represent constituencies in rural Uganda which are characterised with darkness when night falls.
In a related development some economic analysts have said that in case of scarcity the government fuel reserves mainly serve key government agencies. As a result, they are urging the private importers to bring in more fuel.
Uganda mainly imports fuel in the form of petrol, diesel and keresone, through Mombasa port which is 1,200 kilometres away compared to the Dar es salaam port in Tanzania, 1,600 kilometres away, with the former bringing in cheaper fuel at Shs85 lower per litre.
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