Bill that gave gov't oil monopoly will lead to exploitation, DP warns

By Muhamadi Matovu | Wednesday, November 22, 2023
Bill that gave gov't oil monopoly will lead to exploitation, DP warns
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The Democratic Party (DP) has criticised Parliament for passing the Petroleum Amendment Bill 2023 without conducting thorough consultations, warning that it could lead to the exploitation of Ugandans.

The recently passed bill grants a monopoly on the supply of oil in Uganda to Uganda National Oil Company Ltd (UNOC).

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According to the bill, UNOC will be the sole entity authorized to purchase oil from outside Uganda and then sell it to licensed oil companies such as Total, Shell, STABEX, and others.

The bill also confers exclusive rights upon UNOC to supply all licensed companies in Uganda's oil markets.

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Ismail Kiirya, the acting party spokesperson and president of Uganda Young Democrats (UYD), expressed concern that the bill was rushed without addressing the crucial issue of reducing oil prices.

"First of all, it contradicts the Competition Amendment Bill passed in 2022, awaiting the president's signature," Kiirya said.

He pointed out that the competition Bill promotes market efficiency and fights against business monopolies, while the new bill grants a monopoly to UNOC.

Kiirya argued that Parliament should have engaged in wider consultations with stakeholders, emphasizing that the minority report was not given proper consideration.

He advocated for a liberalized economy where fair competition is encouraged, drawing parallels with the insurance industry.

Expressing apprehension, Kiirya suggested that the government might exploit this opportunity to manipulate Ugandans by imposing high taxes on UNOC, leading every company to raise prices based on the added tax burden.

Kiirya also acknowledged the opposition's efforts to hold the government accountable for the abduction of individuals whose whereabouts remain unknown.

However, he cautioned against selective boycotts, urging a more comprehensive and consistent approach.

He commended the Leader of the Opposition for temporarily suspending the boycott to pay respects to the late former Prime Minister Henry Kyemba. Kiirya advocated for a similar spirit of cooperation on crucial matters in Parliament, such as the oil bill.

"If the Leader of Opposition took a similar stance on the oil bill, some clauses might have been reconsidered. The opposition needs to present a minority report to ensure checks and balances," Kiirya asserted.

He called for a participatory approach and consultation among opposition parties in Parliament to ensure that decisions align with shared values and principles.

Kiirya emphasized the importance of collaboration to prevent the government from acting without opposition scrutiny

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