Uganda's energy minister on Wednesday tabled a bill before parliament seeking to grant exclusive rights to Bahraini company Vitol to be the sole importer of petroleum products into the east African country.
Uganda's cabinet has already approved the changes to the petroleum law.
The importation and marketing of petroleum products has generally been liberalized with several private entities involved in the business, mainly sourcing the products from neighboring Kenya.
Uganda's energy ministry said in a statement that that system has exposed the landlocked country to supply disruptions and high pump prices.
A deal between the state-owned Uganda National Oil Company (UNOC) and Vitol energy is already in place.
Under it, Vitol will supply oil products to Uganda National Oil Company which will in turn sell the products to petrol station operators. The first shipment from Vitol is expected to arrive in January.
But some oil marketing companies have criticized the deal, accusing the Ugandan government of seeking to create a monopoly.
Uganda imported $1.6 billion worth of petroleum products in 2022, according to the country's central bank.
Uganda's cabinet has already approved the changes to the petroleum law.
The importation and marketing of petroleum products has generally been liberalized with several private entities involved in the business, mainly sourcing the products from neighboring Kenya.
Uganda's energy ministry said in a statement that that system has exposed the landlocked country to supply disruptions and high pump prices.
A deal between the state-owned Uganda National Oil Company (UNOC) and Vitol energy is already in place.
Under it, Vitol will supply oil products to Uganda National Oil Company which will in turn sell the products to petrol station operators. The first shipment from Vitol is expected to arrive in January.
But some oil marketing companies have criticized the deal, accusing the Ugandan government of seeking to create a monopoly.
Uganda imported $1.6 billion worth of petroleum products in 2022, according to the country's central bank.