Debate over the economic viability of constructing an oil refinery in Uganda seems to be an issue of the past after Uganda's resolution to involve its neighbours in the development of a refinery in the western district of Hoima.
Industry analysts had earlier raised concerns over the commercial weaknesses of building a refinery in Uganda. Some of the concerns stemmed from the fact that with a thin regional oil market and the high costs of running a refinery in Uganda coupled with the low profit margins that accrue from refining, Uganda needed to make genuine considerations of the economies of scale before rushing to satisfy any short term interests.
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