The National Economic Empowerment Dialogue (NEED) party has accused the government of Uganda of smuggling over 1.7 million litres of fuel for the first time it conducted the direct importation of fuel through Port Mombasa in Kenya.

According to Moses Matovu, the party spokesperson, in the declaration document that the Ugandan government gave to the Kenya Revenue Authority, it is indicated that they were to import 6.5 million litres of petrol, but the consignment contained 8.2 million litres, explaining that about 1.7 million litres remained undeclared.

Matovu added that the smuggling of around 1.7 million litres of oil worth Ugx 68 billion compelled the Kenya Revenue Authority to slap Uganda with a penalty of approximately Ugx 95 billion.

While addressing the members of the press at NEED offices in Kampala on Monday, July 15, 2024, Matovu wondered whether the government was smuggling on behalf of Ugandans to get a low pump price.

“Unfortunately, the Minister of Energy, Dr. Ruth Nankabirwa, went to Kenya twice in four days, trying to negotiate, but her plea was rejected. So Ugandans will eventually pay Ugx 95 billion,” Matovu said.

He said that the smuggling deal tarnishes the image of the country internationally and deters some investors who would want to partner with Uganda in terms of business.

He asked why Vitol Tank Terminal International (VTTI) was given a 5-year contract to import fuel, yet Uganda intends to get its first oil drop in 2025.

According to Matovu, VTTI is a privately owned terminal that ties into the Kenya Pipeline Company network in Mombasa and gives access to the Ugandan market and other landlocked countries.

“And when you cite what happened in Zambia, the company (VTTI) was struggling with court cases regarding the poor quality of fuel they were importing into the country,” Matovu said.

“If it is not the government cutting such deals, then who has the power to influence trade on behalf of this country? As President Museveni pretends to be fighting corruption, I just want to let you know, Ugandans, that he is just woodworking you because he is doing it for political purposes,” he added.

The NEED party urged all Members of Parliament to demand the review of the importation bill to save the taxpayers who are most likely to be affected by such reckless government deals.

However, as our efforts to reach Nankabirwa, the Minister of Energy and Mineral Development, remained futile, she had earlier confirmed that Kenya increased the bond fees at the VTTI storage facility to $45 million.