{"id":67747,"date":"2024-02-27T19:23:07","date_gmt":"2024-02-27T19:23:07","guid":{"rendered":"https:\/\/www.africa-press.net\/uganda\/?p=67747"},"modified":"2024-02-27T16:32:23","modified_gmt":"2024-02-27T16:32:23","slug":"kenya-oil-dealers-in-panic-as-uganda-picks-tanga-port","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/uganda\/all-news\/kenya-oil-dealers-in-panic-as-uganda-picks-tanga-port","title":{"rendered":"Kenya oil dealers in panic as Uganda picks Tanga port"},"content":{"rendered":"

Africa-Press – Uganda. <\/strong><\/span>Kenyan oil dealers are in a crisis mode after Uganda stuck to its guns and started talks with Tanzania to import its fuel through the Port of Tanga instead of the Port of Mombasa following a spat with Nairobi.<\/b><\/p>\n

Uganda had initially announced that it was in talks with Tanzania to use the Port of Dar es Salaam to import its fuel after Kenya refused to give it concessions to use its pipeline.<\/p>\n

But the road distance between Dar es Salaam and Kampala is 1,715.6km, which is 49.5 percent longer that the distance of 1,147.6km between Mombasa and Kampala.<\/p>\n

This shorter distance means that Uganda saves up to $35 per cubic meter for using Mombasa instead of Dar. The Business Daily understands Kenyan State officials \u2013 as well as oil executives in both Kenya and Uganda \u2013 had earlier believed that Uganda was bluffing about shifting its import route to Tanzania. This is because, besides being cheaper, the Mombasa port is faster and more efficient than the Dar es Salaam port.<\/p>\n

But this has changed after it emerged last week that Uganda and Tanzania are locked in talks that will see the former import fuel via the Port of Tanga, which is far closer to Kampala. Tanga is the oldest port in East Africa and is the second largest in Tanzania. While it’s far smaller than the Dar and Mombasa ports, Tanzania has been boosting its capacity to handle more cargo in recent years.<\/p>\n

\u201cThe mood in the industry has been that the Tanzania talk by Uganda was just posturing to push Kenya to give it concessions. But this has changed completely because Uganda are now serious and are close to reach an agreement with Tanzania to use the Tanga port,\u201d said source privy to the matter.<\/p>\n

\u201cTanga is not as far (from Kampala) as Dar and therefore the price difference with Mombasa will not be as big. We also understand that Uganda could be given some reliefs by Tanzania to close the gap,\u201d said the source. Uganda currently buys 90 percent of its fuel via Kenya and 10 percent through Tanzania.<\/p>\n

The Petroleum Outlets Association of Kenya (Poak), a lobby for independent oil dealers, says that it would deal a huge blow to local OMCs if Uganda actualises the plan.<\/p>\n

\u201cIf Uganda indeed moves to the Tanzania route a lot of local oil companies will really suffer because they will lose their biggest market,\u201d said Poak chairman Martin Chomba.<\/p>\n

About a third of all fuel imported into Kenya is destined for the transit market, translating to an average of 200 million litres monthly. Mr Chomba said that a lot of especially small dealers rely on this transit market and would likely be forced to close shop.<\/p>\n

He further said that Kenya would lose a key source of foreign exchange. Oil dealers are paid for their fuel exports in US dollars. Uganda last year said it imports fuel worth $2 billion through Kenya annually.<\/p>\n

\u201cThe transit market is a key source of forex for the country and this would really affect dollar inflows,\u201d said Mr Chomba.<\/p>\n

State-owned Kenya Pipeline Company (KPC) would also emerge as a major loser. This is because without the nearly a third of transit market, it would lose millions of shillings in depot tariffs, which are a major source of revenue for KPC. Currently, oil firms evacuating fuel from KPC\u2019s Nairobi fuel depot pay Ksh2,582.72 ($17.75) per cubic-metre.<\/p>\n

This will further rise to Ksh2,791.85 ($19.19) per cubic metre in July.<\/p>\n

The origin of this latest spat between Kenya and Uganda comes following the decision by Kampala last year to designate State-owned Uganda National Oil Company (Unoc) as the importer of all its fuel for supply to private oil dealers.<\/p>\n

Unoc subsequently applied to Kenya\u2019s Energy and Petroleum Regulatory Authority (Epra) in September 2023 to be registered as an OMC in Kenya, which would allow it to import and export fuel like other OMCs and utilize Kenya Pipeline Company\u2019s (KPC) pipeline.<\/p>\n

Epra however declined UNOC\u2019s application because UNOC could not substantiate the requisite annual sales volumes of 6.6 million litres of either super petrol, Automotive Gasoil (diesel), and\/or Jet A1\/kerosene in Kenya.<\/p>\n

Uganda has since then sued Kenya at the East African Court of Justice (EACJ).<\/p>\n

For More News And Analysis About Uganda<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Uganda. Kenyan oil dealers are in a crisis mode after Uganda stuck to its guns and started talks with Tanzania to import its fuel through the Port of Tanga instead of the Port of Mombasa following a spat with Nairobi. Uganda had initially announced that it was in talks with Tanzania to use […]<\/p>\n","protected":false},"author":84,"featured_media":67746,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,7,12,258],"tags":[233,240,234],"class_list":["post-67747","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-head-lines","category-policy","category-to-homepage","tag-africa-press","tag-africa-press-uganda","tag-uganda"],"yoast_head":"\nKenya oil dealers in panic as Uganda picks Tanga port - Uganda<\/title>\n<meta name=\"description\" content=\"Kenyan oil dealers are in a crisis mode after Uganda stuck to its guns and started talks with Tanzania to import its ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/uganda\/all-news\/kenya-oil-dealers-in-panic-as-uganda-picks-tanga-port\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Kenya oil dealers in panic as Uganda picks Tanga port\" \/>\n<meta property=\"og:description\" content=\"Kenyan oil dealers are in a crisis mode after Uganda stuck to its guns and started talks with Tanzania to import its ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/uganda\/all-news\/kenya-oil-dealers-in-panic-as-uganda-picks-tanga-port\" \/>\n<meta property=\"og:site_name\" content=\"Uganda\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2024-02-27T19:23:07+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/uganda\/sites\/34\/2024\/02\/sm_1709038642.932745.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/kenya-oil-dealers-in-panic-as-uganda-picks-tanga-port#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/kenya-oil-dealers-in-panic-as-uganda-picks-tanga-port\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/uganda\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Kenya oil dealers in panic as Uganda picks Tanga port\",\"datePublished\":\"2024-02-27T19:23:07+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/kenya-oil-dealers-in-panic-as-uganda-picks-tanga-port\"},\"wordCount\":726,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/kenya-oil-dealers-in-panic-as-uganda-picks-tanga-port#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/uganda\/sites\/34\/2024\/02\/sm_1709038642.932745.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-Uganda\",\"uganda\"],\"articleSection\":[\"all news\",\"head lines\",\"policy\",\"to-homepage\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/uganda\/all-news\/kenya-oil-dealers-in-panic-as-uganda-picks-tanga-port#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/kenya-oil-dealers-in-panic-as-uganda-picks-tanga-port\",\"url\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/kenya-oil-dealers-in-panic-as-uganda-picks-tanga-port\",\"name\":\"Kenya oil dealers in panic as Uganda picks Tanga port - 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