Uganda speeds up oil production to tackle fuel shortage

Uganda is speeding up oil exploration and production in order to tackle the fuel shortage, said Energy Minister Daudi Migereko.

"The decision, which the government has taken to fast-track oil production through the Early Production System is the sustainable solution to the disruption in supply," Migereko was quoted by the state-owned New Vision daily on Tuesday as saying.

Migereko said as long as Uganda depends on Kenya for imports, the fuel shortages will continue, noting that there was a general shortage of petrol in East Africa, but the diesel supply was relatively tolerable.

"We are looking at it as a medium to long-term strategic solution to transform our economy," said Migereko.

"The exploration and production program of oil will not stop. Uganda must stop depending on imported petroleum products. It is expensive, unreliable and not controllable," he stressed.

The minister said the public should use fuel sparingly as the government continues negotiating with Nairobi to have fuel depots in Kenya open for longer hours to enable Ugandan transporters to work 24 hours.

Migereko said the fuel shortage was a result of problems with the Kenyan oil pipeline which is under repair.

Meanwhile, the introduction of the three-axle weight limit for trucks passing through Kenya from October 2008 makes fuel tankers carry about 35,000 liters per trip instead of the previous 42,000 liters at the same amount of taxes.

The minister also blamed the delays in delivery of fuel to the congestion at Mombasa port, as well as the shot up of freight and insurance charges on the high seas due to piracy at the seas.

He said the government had asked Rift Valley Railways to deliver fuel to Uganda and advised oil companies to use the Tanzanian route as an alternative.