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Proposed bill in Parliament titled “The Petroleum Supply (Amendment) Bill 2023” that aims to grant the Uganda National Oil Company Ltd (UNOC) exclusive authority to supply petroleum products to licensed oil marketing companies in Uganda. The new policy is aligned with a Cabinet resolution to ensure stable oil supply and prices, with UNOC set to become the exclusive fuel supplier starting in January 2024.

The Government has introduced a Bill in Parliament, titled “The Petroleum Supply (Amendment) Bill 2023,” which aims to grant the Uganda National Oil Company Ltd (UNOC) the exclusive authority to supply petroleum products to licensed oil marketing companies in Uganda. The bill was presented to Parliament by the Minister of Energy and Mineral Development, Ruth Nankabirwa, on Tuesday 31^st October 2023.

The proposed legislation is intended to enhance the security of petroleum product supply, improve stock levels within the country, and promote competitiveness in consumer and retail pump prices. Minister Nankabirwa highlighted deficiencies in the existing Petroleum Supply Act of 2003, which this Bill seeks to rectify.

During her presentation to the House, Minister Nankabirwa emphasized that the current Act does not grant UNOC the authority to supply all petroleum imports to licensed oil marketing companies in the Ugandan market, thus posing a threat to the country’s petroleum product supply security. Additionally, this gap in the existing legislation has occasionally left Uganda vulnerable to supply shortages and abrupt price increases.

The Bill has been formally introduced for its first reading and has been referred to a parliamentary committee (natural resources) for further consideration. If approved, this legislation will end Uganda’s reliance on Kenya’s open tender system and empower UNOC as the sole supplier of fuel in Uganda.

Minister Nankabirwa noted that this new policy aligns with a Cabinet resolution to ensure stable oil supply and prices and that UNOC will become the exclusive fuel supplier to oil marketing companies in Uganda starting from January 2024.

UNOC is a government-owned limited liability company responsible for managing the government’s commercial interests in the petroleum sector and ensuring sustainable resource exploitation.

Minister Nankabirwa further explained that Uganda’s dependence on Kenya’s procurement system for oil products has led to inefficiencies and the need for direct importation by UNOC, as Kenya often prioritizes its local companies in the allocation of petroleum products. The proposed amendment to the Petroleum Supply Act 2003 aims to support UNOC in this endeavor, providing greater control over Uganda’s oil supply and reducing dependence on external sources.