Oil Marketers Deny Fuel Hoarding, Blame shortage to the Middle East Conflict

Oil Marketers Deny Fuel Hoarding, Blame shortage to the Middle East Conflict

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The Sustainable Energies and Petroleum Association of Uganda (SEPA-Uganda), the umbrella body of all licensed oil marketing companies in the country, has rejected government's allegations of fuel companies hoarding, manipulating, and smuggling fuel across borders.

In a press release issued on Sunday evening, the association said it has noted with serious concern recent public statements alleging that sector players are exploiting current geopolitical tensions to hoard fuel, inflate prices, and engage in cross-border smuggling.

"SEPA Uganda strongly rejects these allegations. The downstream petroleum sector in Uganda operates within robust compliance frameworks, supported by internal controls and continuous monitoring to promote transparency and accountability," the statement signed by Anthony Ogalo, the General Manager of SEPA, says.

The statement adds that member companies are required to operate under strict regulatory oversight and to comply with all applicable laws, standards, and government directives. It explains that the country's fuel supply is centrally coordinated by the Uganda National Oil Company (UNOC), and all official queries regarding national stocks, supply levels, and imports should be directed to it.

"Current pricing pressures, supply constraints, and isolated fuel shortages at some service stations are a direct result of disruptions in global oil markets driven by ongoing conflict in the Middle East and not deliberate actions by oil marketing companies," the statement reads. It adds that its members remain committed to ethical conduct, fair pricing, uninterrupted service delivery and they remain focused on ensuring that fuel supply continues to support essential services, businesses, and communities across Uganda.

Last week, government announced that it had started investigating oil marketing companies in the country involved in hoarding fuel, re-exporting to neighboring countries to create artificial shortages and hike prices.
Source: Daily Monitor
 
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