Parliament has instructed the government to urgently address the country’s dwindling fuel reserves following another sharp rise in global oil prices.
During a sitting of the House, several lawmakers voiced concern over the inadequate stock levels being maintained, leaving Uganda vulnerable to supply shocks and market fluctuations that are being transferred to consumers.
It was revealed that the current reserves only cover around 15 days of national demand compared to the recommended minimum 45 days. This goes against the set guidelines to act as a buffer against price volatility.
The energy committee tasked the Ministry of Energy to swiftly expedite negotiations with potential overseas partners to secure committed supplies as an mitigation measure. They also want a full report on the depleting reserves status.
In response, government officials acknowledged the shortfall but attributed it to a lag in oil deliveries that were disrupted by hoarding during the pandemic.
They assured parliament of scheduled fresh imports to replenish reserves to appropriate levels. However, skepticism remained on assurances given past failure to stabilize fuel costs.
MPs agreed close monitoring is required to guarantee a steady, affordable and sustainable oil supply into the country.
If not addressed promptly, insufficient stockpiles could undermine energy security and exacerbate the burden on consumers from frequent price shocks in international markets.