Tuesday, 8 May 2007

Uganda explores Dar option to solve diesel crisis

From The East African, Nairobi, KENYA

The Ugandan government has resolved to import additional fuel through Tanzania after problems with Kenya’s Mombasa-Eldoret oil pipeline caused a diesel shortage and higher pump prices.

The decision comes after President Yoweri Museveni accused the Kenya Revenue Authority (KRA) of worsening the crisis by asking Ugandan oil firms to pay deposits on any fuel loads they collect from Mombasa.

In a statement announcing the decision, Uganda’s Energy and Mineral Development Minister Daudi Migereko, however, concluded that fuel imports through Tanzania will cost more due to the lack of an oil pipeline from Dar-es-Salaam and the need to use both road and water transport.

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