Dangers of rising numbers of fuel stations in Kampala

Author: Brian Mukalazi

What you need to know:

Mr Brian Mukalazi says: The increased volume of petroleum trade has not made much sense as fuel prices remain high.

If you took a walk or drive in and around Kampala today, one of the most prominent businesses you will quickly notice are fuel stations.

According to available data from the Ministry of Energy and Mineral Development, by September, there were 1,047 licensed petroleum retail outlets operating in Uganda. 

In addition, it is estimated that there are more than 2,000 other unlicensed fuel stations operating in the country. 

The majority of these outlets are located in and around Kampala and are seen to be just within a stone-throw away from each other. 

While the upsurge in these fuel stations has created employment opportunities for a number of Ugandans and somewhat led to effective use of idle land, I think the underlying dangers greatly outweigh the resulting benefits. 

Owing to the inflammable nature of the products sold, these outlets pose real safety threats on communities (especially residential areas) within which they are situated. 

Many of them have been found not to operate in line with the required health, safety and environmental standards.

Surprisingly, the relevant authorities (Energy ministry, Uganda National Bureau of Standards (UNBS), National Environment Management Authority (NEMA), Kampala Capital City Authority (KCCA) and others) seem not to be in the least concerned about this situation, which makes me wonder whether there’s anybody in charge.

In the Auditor General’s report for the year ended June 30, 2019, it was revealed that: “Of the 984 fuel stations in the Ministry of Energy database, 363 fuel stations did not possess environmental impact assessments, 205 fuel stations did not possess construction permits, and 698 fuel stations did not possess construction completion certificates.” 

The Auditor General’s report further noted that out of the 1,695 fuel stations inspected over a period of three years, only 10 (1 per cent) carried out environmental audit reports, 236 (14 per cent) carried out training of staff on health and safety, and only 252 (15 per cent) had proper drainage. Also, the quality of fuel sold was reported to be of low quality and had average failure rate of six per cent.

In some locations, on top of being situated in close proximity with each other, the fuel or pump stations have been constructed in road reserves and thus interfering with traffic flows for motorists. 

In economic terms, the increased volume of petroleum trade has not really made much sense as fuel prices remain exorbitantly high partly because we have no fuel price regulations in place. In fact, the current fuel prices in Uganda appear to be the highest in the East African region. 

In my view, these challenges are largely caused by weaknesses in the implementation of existing laws, regulations and guidelines by the relevant authorities. And perhaps as a consequence, there have been glaring lapses in licensing, monitoring, inspection and enforcement. 

The relevant authorities should adequately compel fuel stations dealers to adhere to the set standards and requirements. Where inadequacies and non-compliances are noted, bold actions  should be taken to correct the same. 

To accomplish the foregoing suggestion, the monitoring and enforcement divisions/agencies at all levels should be adequately staffed and resourced to efficiently cover the available volume of work, while working within clearly stipulated work plans. 

Mr Brian Mukalazi is the Country Director of Every Child Ministries Uganda.
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