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Uganda: Fuel Supply Low in City

Peter Nyanzi

7 March 2007

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Kampala — FUEL companies are grappling with reduced supplies of petroleum products, resulting from "logistical" problems in the supply chain on the Kenyan side. Shell Uganda Managing Director Ivan Kyayonka told Daily Monitor this week that there has been a general scarcity in the industry for over a week.

"The supply from Kenya has reduced over the past several days due to logistical problems including persistent power cuts at the Eldoret terminal on the Kenyan side," Mr Kyayonka said, quickly adding that the situation was now "returning to normal."

Kobil Communications Manager Joseph Kisembo said the shortage was not acute the reason many consumers had not noticed there was a problem. He said these supply interruptions on the Kenyan side were usual but often do not last long.

According to information from the Uganda Revenue Authority, petroleum imports at Malaba declined substantially in the last few weeks. Malaba is the main entry point for products from the Eldoret petroleum terminal.

Diesel reduced from more than 13 million to 9 million litres while petrol reduced from about 9 million to 6 million litres. Diesel supplies at Busia, which gets its supplies from the Kisumu terminal, also declined. Uganda gets the largest percentage of its revenue from petroleum products.

Mr Kyayonka said the situation was now returning to normal and that his company was coping. However, several petrol stations were only waving off motorists due to lack of fuel.

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