Ugandan Oil Firms Meet Kenyan Officials Over Fuel Shortage
Posted on: Tuesday, 13 September 2005, 06:00 CDT
Text of report by Hillary Kiirya entitled "Oil dealers meet Kenya authorities" published by Ugandan newspaper The New Vision website on 13 September
Local oil companies have met Kenyan officials over the increasing fuel scarcity in Uganda and asked them to relax the recently imposed regulations on the products.
"We have a big shortage, mainly of diesel. We are not receiving enough because the Kenyan government has since August changed the regulations on fuel movement to curb smuggling. We have the products loaded but we do not know when we shall receive them here," Shell manager Ivan Kyayonka said yesterday.
Two weeks ago, most oil companies started rationing fuel due to stock shortages following the delay in clearing trucks by the Kenya Revenue Authority (KRA). Kyayonka said they held several meetings with the Kenyan government to relax the regulations.
Energy minister Syda Bbumba, state minister Daudi Migereko and the permanent secretary could not be reached for comment.
Oil industry sources said the scarcity had mostly affected supply to construction companies engaged in major projects like road works that required a lot of fuel. This has also threatened to hike the oil prices.
"Oil companies are rationing fuel allocated to bulk buyers like road contractors and filling stations in Kampala and up country. The dealers demand cash-down payment before supplying the products," a source said.
Last year, the country consumed over 650m litres of fuel, which was over seven per cent higher than 622m litres in 2003. This indicates that the consumption is going higher year after year.
Kenyan authorities recently changed rules on importation of oil. Under the new rules that started this month, oil dealers have to pay taxes on oil products to KRA [Kenya Revenue Authority] in stages within a month of their release from the refinery at the Mombasa Port.
Source: BBC Monitoring Africa
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