Government launches prob into oil firms over fuel hoarding

Government launches prob into oil firms over fuel hoarding

Eronda

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Government has launched investigations into Oil Marketing Companies (OMCs) suspected of hoarding fuel and charging exorbitant prices, even as officials insist national stocks remain sufficient.

The move follows mounting public complaints of dry pumps, rationing, and selective selling at petrol stations across Kampala, Wakiso, and upcountry towns, contradicting repeated assurances from the Ministry of Energy that supply is normal.

“It had come to our attention that some OMCs are charging exorbitant costs of fuel and others are reported to be hoarding,” the ministry said in a statement this week.

Dr Patricia Litho, the Assistant Commissioner for Communications and Information Management at the Ministry of Energy, said while deliberate hoarding has not yet been confirmed, it remains a key line of investigation.

“We suspect, but we cannot confirm. What we can confirm is that we supplied enough stock,” she said in an interview.

Government is now preparing enforcement action under the Petroleum Supply Act, with a closed-door meeting scheduled next week between the ministry and OMCs.

The law allows government to revoke licenses, shut down operators, and even seize hoarded fuel.

Under the Petroleum Supply Act, 2003, as amended in 2023, creating an artificial shortage or withholding petroleum products without reasonable cause is an offence.

Penalties include fines of up to Shs200 million, imprisonment for up to 10 years, and revocation of operating licences. The law also empowers the Minister to seize hoarded fuel.

Source😀aily Monitor
 
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