The government through the ministry of energy says that the country is still grappling with high fuel prices for an unspecified time until the production of oil commences.
Minister of Energy, Irene Muloni while delivering an update in the sector as part of the NRM manifesto week on Thursday said that the question of fuel prices is way above the countries mandate as prices are determined by international forces of economy.
She said new discoveries, particularly in Uganda could spark a new wave of developments that is likely to change the face of the country among the energy producers.
Muloni says the country is now banking on petroleum sector expected to kick off in 2020.
“We have issued production licenses’ to three companies and we are hopeful this will help address the unstable fuel prices.”
Muloni revealed that government granted eight production licences to UK listed Tullow Oil [Uganda] and France’s Total E&P (Uganda) B.V, and CNOOC. The development is expected to pave way for the country to join the league of oil producers.
“Front ending designs have been started on, preparations for production of oil are on course,” she said.
A production licence is the final phase in the oil production cycle and exploration, appraisal, development and production, eventually leading to commercial oil production.
Efforts are however under way to amend several legislations to which is expected to ease the transformation of the petroleum sector.
“We are preparing to amend the mining act, to encourage value addition.”
The minister however adds that emphasis is being put on issues of governance and strength of governing institutions if this sector is to flourish.