Government Considers Open Fuel Tendering System

Audio 1

Energy Minister, Hillary Onek says that government is considering introducing a centralized tendering system for the importation and supply of fuel as part of the efforts to resolve the perennial fuel crisis in Uganda. Onek says that the Open Tendering system will help reorganize oil marketing and the constant supply of fuel in the country.

He say a similar arrangement has been working in Kenya since 2008 but in Uganda the fuel companies could be contracted to supply fuel to each region in the country. Under the Open Tendering System, a company that submits the lowest bid imports crude oil or refined petrol, diesel and kerosene on behalf of other marketers.

The proposed regulations will give the minister powers to prescribe quantities of crude oil and refined petroleum products to be imported outside the open tendering system.

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Onek explains that uncoordinated importation of fuel has been identified as primary causes of congestion at the Mombasa port leading to the fuel crisis in Uganda. Pump fuel prices have over the past four week skyrocketed across the country.

MPS however during the debate insisted that the Energy ministry has done little to prepare for emergencies by storing fuel in the reserves.

Charles Angiro Gutamoi, the Erute County North MP in an interview said the minister's statement in parliament is similar to those it has made whenever the fuel crisis is experienced.

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MPS are concerned that the fuel crisis is likely to further affect the economy now that there is low generation of electricity.