President Yoweri Kaguta Museveni broke ground for the 320-million-litre Kampala Storage Terminal in Mpigi, highlighting the importance of strengthening Uganda’s petroleum storage capacity and long-term energy security.
Reflecting on the management of the petroleum sector, President Museveni said that when the NRM Government came to power in 1986, the administration of several Government functions was entrusted to technocrats. He noted that he later learnt, following information brought to his attention by a Kenyan Senator, that Uganda was purchasing petroleum products through middlemen in Kenya.
According to the President, Government intervention in the petroleum supply arrangement has resulted in significant reductions in import costs. He cited the cost of diesel falling from USD 118 to USD 83 per metric tonne, petrol from USD 97.5 to USD 61.5, and aviation fuel from USD 114.25 to USD 79.25.
President Museveni said the development of the Kampala Storage Terminal is an important step towards increasing Uganda’s strategic petroleum reserves as the country continues to develop its petroleum resources.
The President also welcomed regional cooperation in strengthening petroleum security, noting that Tanzanian President Samia Suluhu Hassan had sent a delegation to attend the occasion.
He emphasised the importance of Uganda working closely with Tanzania and other East African countries to strengthen petroleum supply systems, improve regional energy security and support the region’s growing economies.