Petroleum products marketing companies in Uganda under their umbrella body, Sustainable Energies and Petroleum Association (SEPA) are pushing for amendment to allow importation of cleaner and higher quality petrol to meet a growing demand for such products.
The fuel marketers want the Petroleum Supply Act amended to offer a leeway for licensed marketers to ship in, the special petroleum products. Currently, the Uganda National Oil Company (UNOC) has a monopoly in the importation of petroleum products.
The oil marketers however, say the leeway is necessary to cushion consumers during instances when the Uganda National Oil Company is not in position i to import higher grade petrol products or in the required quantities.
“Oil marketing companies had agreed to bring higher grade petrol into the country, which could be at 95 to 98 octane rate for purposes of those who drive cars which require high rating petrol. We are asking that the bill allows OMCs to import such products when UNOC is unable,” said Anthony Ogalo, General Manager, SEPA.
He warned that the law should consider the dynamics of the supply chain, such as the changing grading of petroleum products and their demand, as well as the environmental aspects.
“If the issue of the capacity of UNOC to import all specialized products is not addressed, there might be a challenge when a marketing company wants to bring such products it will not be allowed since UNOC will only be the licensed supplier,” Ogalosaid.
The bill provides that UNOC will import and supply automotive gasoline or super petrol, automotive gasoline or diesel, Jet A-1 and dual purpose kerosene.