The companies have accused 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 exaggerated prices of certain commodities because they are supplying to the oil companies.
Out of the frying pan: Bunyoro eggs suppliers increase prices for oil companies
Companies working to develop oil and gas in the Albertine region have protested hiked prices for food. The companies have indicated that prices of some goods have more than doubled within a period of months. Observers and authorities have blamed the government for not sensitising the public to utilise the opportunities introduced by the oil companies.
For example, Komugisha says an egg which is sold between shillings 300 and 500 in Kampala is being sold to oil companies between shillings 1,000 and 1,500 by suppliers in Bunyoro. This situation has forced oil companies to order food from Kampala since it is cheaper than the region of their operations.
Komugisha was speaking on Wednesday during the community suppliers’ development program networking symposium for people intending to supply the oil and gas industry in the Kikuube district.
Residents and suppliers call for support
However, residents in Kikuube especially women say they do not have sufficient information to properly utilise the supply opportunities available in the oil and gas sector.
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 urges the government and the oil companies to thoroughly sensitise the local communities about the available opportunities.
Teddy Nyamaizi, also a resident says there is a 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 (CAO) says there is a 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 the government will not just distribute oil money to them.
Registration of suppliers
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 a foreign entity.
JOIN OUR PULSE COMMUNITY!
Eyewitness? Submit your stories now via social or: