Uganda’s national fuel reserves low, says Auditor General

KAMPALA. Hared Petroleum Limited, the company that government contracted to restock Uganda’s strategic fuel reserves, has so far not lived up to expectations.

Though the concession provided that it stocks and maintains 12 million cubic metres of fuel at the Jinja–based facility, Hared has 605,000 cubic metres.

“I noted during inspection in September 2015 there was only 274,000 litres of petrol and 331,000 litres of diesel,” said Auditor General John Muwanga in the Annual Report of the Auditor General for the year ended June 30, 2015.
“My assessment is that the stock build up is not being achieved and, consequently, the national petroleum reserves are not serving the purpose for which they were established.”

Mr Muwanga urged the Energy ministry to take up the matter with the concessionaire.
When contacted, the ministry’s officials said they were locked in meetings and, therefore, could not immediately comment.

It is not clear why the concessionaire is not living up to the conditions of the contract.
Certainly though, in case supply through Kenya is cut off for any reason, Uganda, which consumes at least one million cubic metres of fuel annually for industrial production and transport might have to turn to Tanzania for supplies.
That means maintaining good bilateral relations with the country.

Though Uganda has an estimated 6.5 billion barrels of oil – 1.5 billion of which is recoverable – it will only start commercial extraction in 2020.

The numbers

20m cubic metres
The full capacity of the Jinja strategic petrol tank

10m cubic metres
The full capacity of the strategic diesel tank

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