Unoc says it will ship fuel cargoes for oil firms without affiliates in Kenya.
Oil marketers in Uganda without affiliate transport companies in Kenya will from next week pick their imported product consignments in Kampala, dealing a blow to transport firms that have for decades drawn revenue from shipment of petroleum goods from the Mombasa port.
The Uganda National Oil Company (Unoc), in a circular to oil marketing companies (OMCs), said it will ship fuel cargoes for oil firms without affiliates in Kenya, starting with the maiden shipments that are expected at the Mombasa port next week.
“For OMCs without affiliate logistics partners, Unoc will handle loadings on behalf of these OMCs in the Kenya Pipeline Company system,” Unoc told the OMCs in the circular this week.
Unoc’s move is set to hit local OMCs that have for decades been dealing in the fuel transit business to Uganda, which is the biggest transit market for fuel imported through Kenya’s Open Tender System (OTS) and now the government-backed deal.
Uganda will on July 2 end decades of relying on Kenya for her fuel needs, after Unoc signed a five-year deal to directly import fuel from Vitol Bahrain.
This means that Unoc is now only dealing with Ugandan OMCs who are at liberty to nominate their affiliate Kenyan partners. Kenyan firms outside this arrangement cannot supply fuel to Uganda.
Several local OMCs have for years been primarily trading in the fuel transit market which is led by Uganda, Rwanda, Democratic Republic of Congo, and South Sudan.
Source link : https://www.theeastafrican.co.ke/tea/business/uganda-oil-firms-to-collect-imports-from-kampala-4672612?view=htmlamp
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Publish date : 2024-06-28 05:04:20
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