Uganda: Government to license all fuel dealers

According to a source familiar with the operations of the industry, stations which don't comply with required safety and quality standards may be forced to close shop.

Currently, the industry has about 1,100 fuel stations, which have mushroomed in every corner and near resident areas countrywide. At least 50 per cent of these have been established in the last five-years.

According to a letter from the Commissioner of Petroleum Rev. Frank Tukwasibwe, all dealers have until September 15, to tender in the necessary documents about their businesses.

The Minister of Energy, Engineer Hirary Onek, in an interview said: "This is a normal regulation exercise to ensure safety. You see people putting up fuel stations in places that are not accepted and once it catches fire it could cause danger to many lives."

Some of the requirements that must be fulfilled include; registering the business, depot among others.

Environmental audits

Also each company must have contact of suppliers, proof of their stations approval by the National Environment Management Authority (Nema) and must have environmental audits. Furthermore, each dealer must show that they have a strong financial backing to run the business and all the stations will be visited by the ministry's experts to ascertain these requirements.

The Operations and Marketing Manager of Kobil Uganda, Mr Peter Ochieng, -one of the leading players' welcomed the move by government. He said: "I have no problem but all we need to see is a fair and leveled ground without tax evasion. So we shall then compete based on how I can convince customers that I have better products and services."

Fuel Stations must have tanks which have breathers to enable the tank have space and fire fighting system should be in place.