By Silvia Nyambura
The demand for fuel in the East African region continues to remain higher than the supply purely because of lack of infrastructure. This is according to Hans Paulsen the MD Vivo Energy. The introduction of the Open Tendering System (OTS) where one company wins a tender and parcels out to others in the region however was expected to help address the problem.
Addressing a media briefing held at the Kampala Serena Hotel today Paulsen said, “Uganda’s oil companies receive their petroleum products through the Kenya oil pipeline, which runs from Mombasa to Eldoret through Nairobi. The importers then offload fuel from either Nairobi or Eldoret. Previously, the logistics and infrastructure in Mombasa could not handle bringing in all the fuel for the region. When that happens then there are shortages, inefficiencies and extremely high costs. Ships could sit at the port for months on end waiting to discharge which then creates demurrage. The government then put up the OTS which looks at what fuel can be imported in a month and then divides that into tenders,
