As the first consignment prepares to make its way to Uganda, industry stakeholders are optimistic about the potential benefits as Vivo Energy has entered into a sales and purchase agreement with the Uganda National Oil Company (UNOC) to supply petrol and diesel.
The move comes at a critical time as the country seeks to streamline its fuel supply chain and ensure consistent availability of petrol and diesel for consumers and businesses alike.
The agreement between Vivo Energy and UNOC is expected to enhance the efficiency and reliability of fuel distribution in Uganda.
Geoffrey Elyenu, Vivo Energy’s Supply and Distribution Manager, confirmed the agreement, stating that UNOC will be responsible for determining the baseline cost per liter.
This strategic partnership mandates that fuel companies purchase 100% of their fuel from UNOC, ensuring a unified pricing structure and potentially stabilizing fuel costs across the country.
“We have actually signed contracts like all the other oil importers in Uganda. We have signed contracts with UNOC which guarantee supplies,” said Elyenu.
“UNOC will supply us with 100% of our diesel and petrol.”
Elyenu noted that whether prices will be high or low will entirely depend on the prices set by UNOC.
By consolidating the fuel supply under UNOC, the agreement aims to foster greater transparency and efficiency in the market, ultimately benefiting end consumers.
Further details on the pricing structure and long-term implications of this agreement are anticipated as the initial fuel deliveries commence.
Experts from Vivo Energy emphasised the unique qualities that set Shell apart as a global innovation leader in fuels, with more than a century of experience in research and development.
Elyenu said that every stage of their supply chain is subject to strict quality controls at Vivo Energy Uganda.
“We make sure that quality control is upheld at every stage, from product shipping to our entire network of Shell stations,” he said. This dedication ensures that their clients only obtain the best products and services available.
“Our commitment to achieving and maintaining the highest international Health, Safety, Security and the Environment (HSSE) standards is at the heart of our business and is a key differentiator for Vivo Energy in Africa,”said Kennedy Ggwanga, HSSEQ Manager.
“Being the best in HSSE is not an objective that sits apart from our overall ambitions. It is an integral and essential part of our business plan,” he added. Later, the media team was taken on a tour of the Tank Farm depot to gain a deeper understanding of the supply chain and fuel quality processes.
During the visit, the team had the opportunity to interact with Dinah Nalubega and Lawrence Wavamunno, lab technicians at the Quality Fuels Laboratory.
They provided insights into key quality attributes, including the procedures for receiving products, routine sample collections, quality tests, the fuel additivities process, the functionality of their mobile laboratory among others.
The media team was also given a tour of the Shell Gas filling plant, showcasing the quality checks and processes followed, from the receiving of Shell Gas cylinders to their distribution into the market.
