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Parliament tasks oil companies to analyze impact of proposed UNOC oil monopoly
MP Eddie Kwizera, expressed shock that the oil dealers conceded easily to the government’s monopoly proposal
Members of Parliament sitting on the Committee on Environment and Natural Resources have asked oil marketing companies to write an elaborate explanation how the proposal by the government to grant the national oil company UNOC a monopoly to import Petroleum products will benefit Ugandan consumers.
The MPs made the demand while meeting oil traders under their umbrella body Sustainable Energies and Petroleum Association (SEPA) who were making their submission on the proposed amendment to the Petroleum Supply Amendment Bill, 2023.
The government through UNOC recently signed a 5-year agreement with Vitol Bahrain to import petroleum products, in a move the government said would help secure the supply of oil products and make them cheaper by eliminating middlemen.
In a letter he posted on Twitter, Museveni said there is no reason why Ugandan oil marketing companies were buying petroleum products from middlemen in Kenya.
“A whole country buying from middlemen in Kenya or anywhere else! Amazing but true,” he tweeted.
“Why not buy from the refineries abroad and transport through Kenya and Tanzania, cutting out the cost created by middlemen?” he said.
While meeting the oil dealers, the MPs however appeared shocked that the oil marketers had conceded so easily to the government’s decision to push them out of business.
UNOC is a trader, you are also traders. UNOC is one but you are many, yet you are saying we support UNOC as the sole supplier, what are your interests?” asked Hon. Eddie Kwizera (NRM, Bukimbiri County).
“We want you to demonstrate for the sake of consumers how granting UNOC a monopoly is the best deal for Uganda; demonstrate how the pump prices will be lowered with this law in place,” asked Paul Akamba (NRM, Busiki County).
The Committee Chairperson, Emmanuel Otaala directed SEPA to write to the committee a comprehensive analysis of the bill and how it addresses common issues relating to oil trade as proposed in the bill.
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