President Museveni has broken his silence about the new fuel deal that Uganda signed with Vitol Bahrain E.C. for the importation of fuel into the country.
In a statement on Sunday, afternoon, the president said Uganda imports 2.5 billion litres of fuel per year worth $ 2 billion but noted behind his back, officials opted to buy it through middlemen in Kenya.
"Without my knowledge, our wonderful people, were buying this huge quantity of petroleum products from middlemen in Kenya. A whole country buying from middlemen in Kenya or anywhere else!! Amazing but true," Museveni said.
He questioned the rationale behind buying through and from middlemen yet there are refineries.
"Why not buy from the refineries abroad and transport through Kenya and Tanzania, cutting out the cost created by middlemen? Those involved were not bothered by these issues."
Museveni said when he learnt of it through whistleblowers, he handed the matter to then Minister for Energy, Mary Goretti Kitutu who failed to resolve it.
"About a year ago, I got to know that the matter was never handled. When I studied the issue, I discovered that we lose so much by buying through the middlemen."
He noted that middlemen were selling diesel to Uganda at a price of $118 yet the price for bulk suppliers and refineries is $83 whereas for petrol middlemen would sell it at $97.5 and refineries ell at $61.5 and for kerosene, middlemen sell it at $114 and the refinery at $79.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
"These are prices when the products have arrived at the East African ports. You can see the huge loss Uganda has been incurring on account of our wonderful people."
New deal
Museveni said Uganda has now contracted bulk and refinery suppliers to be able to import fuel into the country at lower prices, noting he has discussed it with Kenya's President Ruto and Tanzania's Suluhu
The president however noted that the "internal parasites who have been cheating their country", have launched a social-media and mainstream media campaign against the new deal.
"They have launched a campaign against our liberation- resistance plan against okuseerwa (being over-charged), assisted by the ever pro-parasite paper known as Monitor. As usual, we are ready to confront the parasites. "
Museveni hailed his counterpart Ruto for handling the Kenya part noting that opponents of the move will not succeed in their plans.
"I can assure the inland East Africans of competitive petroleum products, free of distributions caused by middlemen. The whole of Uganda, North- Western Tanzania, Rwanda, Burundi, Western Kenya, South Sudan and Eastern DRC, will benefit. "
According to the deal signed by the Ugandan government through the Uganda National Oil Company, Vitol will establish " buffer stocks" in Uganda and in Tanzania and this will guarantee security of supply.
