Uganda Business News: Uganda to solve fuel transportation problem

First published: 20090326 12:05:06 PM EST

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The fuel shortage in Uganda due to instabilities in Kenya are expected to stop by May next year if the government manages to complete the Eldoret-Kampala oil pipeline project.

The project being handled by TamOil East Africa will see Uganda bound fuel flowing from Eldorect in Kenya to the Jinja fuel depot and later to a storage and distribution depot in Kampala.

Ben Twodo, the Commissioner for Petroleum says the project is expected to reduce the cost of transporting petroleum. He says this will result in lower fuel prices for Ugandans as well as ensure stable supply of fuel.

Ahmed El Gembri, the Managing Director of TamOil East Africa says the Eldoret-Kampala pipeline extension whose construction begins in May this year will be complete by May 2010.

The pipeline will be an extension of the existing Kenya pipeline system from Mombasa to Eldoret. Gembri told journalists in Kampala that there are plans to extend the oil pipeline to Rwanda, which exports its fuel products from Kenya through Uganda.



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