Kenya has taken steps to avoid a diplomatic row with Uganda over the localization of fuel cargo bound for Kampala.
In this month’s distribution quotas, Kenya shared a record of available diesel and super supplies with Uganda, relieving fears of a coming fuel scarcity in the neighboring country, according to Petroleum Principal Secretary Andrew Kamau.
Kenya ordered oil marketers to localize 133.5 million litres of super and 104.7 million litres of diesel planned for the transit market last month, causing Ugandan lawmakers to raise concerns about potential outages.
Uganda depends on Kenya for 75 percent of its gasoline transportation, illustrating the negative consequences of Nairobi-related interruptions.
Kenya has instructed oil marketers to localize fuel cargoes in MT Campo and MT Elka Athina in order to alleviate a severe shortage that is still hurting the country’s rural areas.
However, oil dealers that primarily deal in the transit market have seen their supply to the regional market suffer as a result of the decision.
“We had a meeting with the Ugandan ministry and their technical people because they were afraid that they were going to have fuel shortage. We explained to them and also sent them their stocks in our facilities and they are satisfied,” Mr Kamau said on Monday.
Oil marketers devote 60% of their gasoline purchases to the domestic market and 40% to neighboring nations such as Uganda.
The move by Kenya to localize the two vessels at the end of last month alarmed Kampala, causing Ugandan lawmakers to urge the release of all supplies destined for the transit market.
