Fuel reserves in Jinja empty amidst rising prices

The management of the Uganda National Oil Company has revealed to MPs on the Finance Committee of Parliament that in spite of the increasing prices of fuel in the country, Uganda’s fuel reserves in Jinja are currently dry with no single litre of fuel.

Some MPs feared that fuel prices could double if there is a problem at Mombasa.

As of December 1,  a number fuel stations were selling petrol between Shs 4650 and Shs 4700 per litre and with diesel costing Shs 4190 per litre.

It had been hoped that government would turn to the fuel in the reserves at Jinja to stabilise the cost of fuel.

This is now unlikely after the revelation that the reserves are empty.

The committee was treated to drama following a verbal exchange between Kampala Central MP Muhammad Nsereko and the committee chairperson Dr. Kefa Kiwanuka over the manner in which the committee should proceed.

To Nsereko and other committee members there was need to have a copy of the oil production sharing agreement for legislators to have an informed point of view before processing the bills.

Even after the Attorney General confirmed that a copy of the agreement was given to Parliament, legislators said it had gone missing from Parliament.

The legislators earlier refused to accept a proposal by UNOC to have powers of appropriation of funds realised from Uganda’s oil instead of Parliament.