KAMPALA. The Sustainable Energies and Petroleum Association of Uganda (SEPA-Uganda), the umbrella body of all licensed oil marketing companies in the country, has rejected government’s allegations of fuel companies hoarding, manipulating, and smuggling fuel across borders.
In a press release issued on Sunday evening, the association said it has noted with serious concern recent public statements alleging that sector players are exploiting current geopolitical tensions to hoard fuel, inflate prices, and engage in cross-border smuggling.
“SEPA Uganda strongly rejects these allegations. The downstream petroleum sector in Uganda operates within robust compliance frameworks, supported by internal controls and continuous monitoring to promote transparency and accountability,” the statement signed by Anthony Ogalo, the General Manager of SEPA, says.
The statement adds that member companies are required to operate under strict regulatory oversight and to comply with all applicable laws, standards, and government directives. It explains that the country’s fuel supply is centrally coordinated by the Uganda National Oil Company (UNOC), and all official queries regarding national stocks, supply levels, and imports should be directed to it.
“Current pricing pressures, supply constraints, and isolated fuel shortages at some service stations are a direct result of disruptions in global oil markets driven by ongoing conflict in the Middle East and not deliberate actions by oil marketing companies,” the statement reads. It adds that its members remain committed to ethical conduct, fair pricing, uninterrupted service delivery and they remain focused on ensuring that fuel supply continues to support essential services, businesses, and communities across Uganda.
Last week, government announced that it had started investigating oil marketing companies in the country involved in hoarding fuel, re-exporting to neighboring countries to create artificial shortages and hike prices.
Earlier in the month, Energy Minister Ruth Nankabirwa warned the fuel dealers against hiking pump prices, arguing that there was no reason for fuel companies to hike pump prices because the Uganda National Oil Company is the sole importer of fuel in the country, sourcing it from international companies which have oil pipelines in other countries other than the Middle East.
Asked what is causing the shortages in the country, Mr. Ogalo said being a landlocked country, Uganda has not been spared by the global fuel supply chain crisis that is affecting movement of ships across high seas.
He said much as ships could be loaded with products destined for Mombasa, they are not docking as scheduled, because of ongoing disruptions in the marine routes.