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HomebusinessWhy Uganda Chose Port of Mombasa for Bulk Petroleum Imports Over Tanzania's...

Why Uganda Chose Port of Mombasa for Bulk Petroleum Imports Over Tanzania’s Dar

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Mt Navig 8 Martinez, a large galleon, arrived in Mombasa on Friday, July 19 with 58,000 metric tons of Middle Eastern petrol bound for Uganda.

A large team of Ugandans welcomed the ship, led by Minister for Energy and Mineral Development Ruth Nankabirwa.

The Uganda National Oil Company (UNOC) stated that it is fully confident in importing oil through Mombasa Port, casting doubt on recent rumors that Uganda had planned to import oil through the port of Dar Es Salaam.

However, the Ugandan delegation expressed concern about the ongoing disturbances in Kenya, which are hurting the movement of commodities through the Northern Corridor.

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It is the first fuel consignment imported by UNOC since its inception in 2015 for distribution to oil marketers in the country in an effort to cut petroleum product prices.

While Kenya hails Uganda’s choice to use Mombasa Port, Uganda’s direct importation of petroleum products has cut off numerous Kenyan oil merchants that supply the country with the items.

Uganda has recognized UNOC as the sole provider of petroleum products following a change in legislation in the country.

Ugandan and Mombasa port officials who welcomed the first such ship reported that the second tanker, Mt Sinbad, was set to dock carrying 65,000 metric tons of diesel.

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Uganda reportedly picked Kenya over Tanzania for bulk petroleum imports due to the advanced handling equipment at the Kipevu Oil Terminal, which opened in 2022.

Nankabirwa stated that direct transportation of petroleum products will result in lower pump costs, faster gasoline delivery, and stable supply.

She stated that Uganda wanted to expedite the construction of a gasoline storage facility and refinery, with UNOC, a state body, taking the lead.

According to the minister, Uganda must assure the safety and security of its supply chain as well as product quality.

“The import of petroleum goods through Kenya will strengthen our regional union. UNOC will ensure that logistics expenses for oil importation are reduced. UNOC is there to protect consumers,” she explained.