By Niyonshima Joshua
The Motor Tank (MT) Kabaka Mutebi II is the first vessel of its type in Uganda to transport fuel into the country by water.
Geoffrey Balamaga, URA Ag. Assistant Commissioner of Field Services, stated during the vessel’s commissioning on Ugandan waters recently, that with the vessel’s full utilization, fuel prices will reduce, resulting in fair commodity prices in the country. He also urged dealers in petroleum products to use the MT to import fuel into the country in order to lower their business costs, adding that water transport is less expensive than road transport, which carries expensive risks.
The cost of petroleum transportation is quite high by road with a cubic meter going at $40 (Shs.148,000) and yet by ship its $20 to $25 (Shs.74,000-Shs. 92,000) per cubic meter. The MT is expected to bring a drop in the costs by 30 to 50% thus impacting the fuel pump prices for the benefit of Ugandans.
URA has been clearing about 300 to 400 tankers per day at the Uganda-Kenya borders of Malaba and Busia. This means that an amalgamated fuel collection point will facilitate easy taxation lowering the risk of tax evasion and avoidance.
Dinesh Donadi the project manager of Mahathi Infra Uganda said that the company will commercially launch operations in the second week of January 2023 after the required tests have been completed.
Three more ships are set to be constructed each with a carrying capacity of 150 trucks of fuel from the port city Kisumu to Uganda with the MT now complete. The MT kabaka Mutebi II has a full capacity of 4.5 million litres of petroleum products and will be ferrying fuel twice a week.
