Uganda National Oil Company ‘has no money’ for Jinja fuel reserve facility

Uganda National Oil Company ‘has no money’ for Jinja fuel reserve facility
Eazzy Banking

The Uganda National Oil Company (UNOC) says it is yet to acquire money needed to maintain strategic stocks of petroleum fuel reserves.

UNOC is required by Uganda Petroleum Supply Act 2003 to maintain strategic stocks also known as the national strategic stocks of fuel on behalf of the country.

The national strategic stocks are supposed to be maintained at government’s cost unlike the fuel reserves that are stocked by a commercial player currently running the Jinja Fuel Terminal on behalf of Uganda National Oil Company.

UNOC General Manager, John Bosco Habumugisha did not reveal to medi  how much money is required to stock and maintain the national strategic stocks.

Fuel pump prices have since early January 2018 increased by close to 15 percent leading to an outcry all over the country. Some legislators and activists have wondered whether the reserves at Jinja Storage Terminal shouldn’t be used to bring down the prices.

Habumugisha says the reserves at Jinja can only be used in cases where there is no fuel being transported to the country.

The current crisis, according to Habumugisha, just like Energy Minister Irene Muloni explained  is more of an external factor than an internal supply problem. He says the fuel prices can only come down once the global crude oil prices go down.


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