How inexplicable charges will make petrol costlier in Uganda

Oil tanker.

Oil tankers delivering fuel to Uganda queue at the Busia border. File | NMG

Unexplained higher pipeline and logistics costs will see super petrol cost more in Uganda than Kenya, thwarting Kampala’s goal of sourcing cheaper oil by ditching Kenya to buy the products directly.

A comparison of the freight and insurance premiums shows that Uganda is paying Vitol Bahrain $81.50 per tonne of super petrol compared to the $90 per tonne that Kenya agreed with three Gulf oil majors under a Government-to-Government (G-to-G) deal.