Oil companies protest hiked food prices in Bunyoro

An egg is sold between shillings 300 and 500 in Kampala but some suppliers in Bunyoro region want to sell an egg to the oil companies at between shillings 1,000 and 1,500

Kampala, Uganda | THE INDEPENDENT | Companies working to develop oil and gas in the Albertine region are bitter that their suppliers have hiked prices for food.

The companies have indicated to URN that the prices of some of the goods have more than doubled within a period of months.

They accuse some of the suppliers of deliberately hiking the price above the prevailing market prices.

Rosette Komugisha, the National content lead at TotalEnergies EP Uganda says some suppliers in the region have hiked and exaggerated prices of certain commodities just because they are supplying the commodities to the oil companies.

She says for example an egg is sold between shillings 300 and 500 in Kampala but some suppliers in Bunyoro region want to sell an egg to the oil companies at between shillings 1,000 and 1,500.

According to Komugisha, this situation sometimes forces them to order food from Kampala since food seems to be cheaper in Kampala than in the Bunyoro sub-region.

Komugisha who was speaking on Wednesday during the community suppliers’ development program networking symposium for people intending to supply the oil and gas industry in Kikuube district.

However, residents in Kikuube especially women  say they do not have enough information regarding the opportunities available in the oil and gas sector although they want to supply goods and services.

Teddy Nyinabarongo, a resident of Kizirafumbi cell in Kikuube town council says most of the women in the area do not know what is happening in the oil and gas sector. She wants the government and the oil companies to thoroughly sensitise the local communities about the available opportunities.

Moreen Ayesigamukama, a resident of Katanga village in Bugambe sub county says most of them have commodities to supply to the oil companies but they do not know where to start since they have limited information.

Teddy Nyamaizi, also a resident says there is need for the government and the oil companies to solve the issue of the information gap existing between the locals and the oil companies.

Moses Agum, the Kikuube Deputy Chief Admirative officer-CAOsays there is need to enhance the capacity of the local suppliers and avail them with timely information regarding the opportunities available in the sector if they are to benefit.

He asked the people of Bunyoro to strategise and tap into the opportunities that will accrue from the sector saying government will not just distribute oil money to them.

Jassim Kiwanuka, the National content officer in charge of contracts at the Petroleum Authority of Uganda says those intending to supply the oil and gas sector with various goods and services must be registered on the National suppliers’ database in order to be recognized internationally saying it is one of the requirements.

Uganda’s National content laws for the oil and gas sector require goods and services provided in the sector to be provided by a Uganda company and if not available in Uganda to be provided by a JV formed between a Ugandan company and foreign entity.

Petroleum Authority of Uganda granted CNOOC Uganda Limited Consent to Drill the first three production wells of the Kingfisher field after reportedly fulfilling the legal and regulatory requirements which include, preparation and submission of a geological well proposal, and submission of a drilling program.

Uganda’s crude reserves are estimated at 6.5 billion barrels, of which 1.4 billion barrels are recoverable.

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URN