Uganda Government Gazette dated 2004-09-10 number 46

The na idi\ rt.)cu i'c1vpx

"W" A A Published

: Uganda Gazette
UXCVIINo.46 10th September, 2004 Price: Shs. 1000

CONTENTS Page (d) stimulate economic development; and
Mdstn'of Energy and Mineral Development—Notice 303
Electoral Commission—Notices ... ... 304 (e) manage energy-related environmental impacts.
Companies Act—Notices ............... ... 304
The strategy for achieving the above broad policy objectives
"vTrade Marks Act— Registration of applications 305-308
are:
Advertisements .............. ... 309
(i) to prepare database on petroleum resources and
build local capacity to acquire, access and
General Notice No. 286 of 2004. evaluate the resource;
MINISTRY OF ENERGY AND MINERAL (ii) to attract private capital and management in
DEVELOPMENT provision of petroleum services.;
GUIDELINES ON LICENSING OF PETROLEUM
(iii) to promote and encourage competition;
FACILITIES AND OPERATORS
(General Notice issued under Section 6 of the Petroleum Supply (iv) to create a transparent legal and regulatory
Act, 2003) framework;
Introduction
I In January 2003 the Ministry of Energy and Mineral (v) to ensure energy supply security and reliability;
I Development (the Ministry) wrote to the Kampala City
(vi) to promote petroleum trade within the region; and
Council (KCC) to stop issuing new licences for construction
of petroleum retail stations. Suspension of licences was for (vii) to strengthen environmental monitoring in the
purposes of ensuring that development of new petrol sector.
stations in Kampala is in accordance-with the new
guidelines to be issued by the Ministry. These guidelines are These guidelines are intended to implement the Energy
intended to serve that purpose. Policy in the above context.

Policy Context Legal Context
In 1994 Government adopted a policy of free market The Petroleum Supply Act, 2003 (the Act) was enacted
economy driven by the private sector. Price control and and came into force in November 2003. The Act repealed
bureaucratic resource allocations were abolished. the Petroleum Act, Cap 97 of (he 1964 Laws of Uganda
Government also privatized its interests in the three oil­ and the Uganda Oil Board Statute of 1991. The Act also
marketing companies, which were nationalized in the 1970s. revoked the Petroleum Filling Stations Rules, S.L 27-29
issued under the Urban Authorities Act, Cap 27 of the
The Energy Policy for Uganda was adopted in 2002. The 1964 Laws of Uganda. The Act provides for anyone
Micy covers, inter alia, the downstream petroleum intending to enter the petroleum supply chain to apply to
ubsector. After adoption of the Policy, the Ministry the Commissioner of Petroleum Supply (the
brmulated a new legal framework to regulate the subsector Commissioner) for grant of a petroleum construction
•n the principles of a free market with open access and fair permit (the Permit) and/or grant of a petroleum operating
ompetition. Industry regulation is therefore focused mainly license (the Licence).
n health, safety and environmental (HSE) standards; unless
:ere arc elements of unfair competition in the market. For purposes of these guidelines, the petroleum supply chain
covers petroleum import, export, re-export, storage,
he main goal of the Energy Policy is to meet energy needs distribution and sale both at bulk consumer and retail
f the population in an environmentally sustainable manner, outlets/stations.
he broad Policy objectives with respect to the downstream
^troleum subsector are to: Objectives of the Guidelines
The objective of the guidelines is co provide for a
(a) establish demand for the resource; transparent, orderly and non-discciminative treatment of all
applications to enter the petroleum supply chain. Existing
(b) increase access to modern affordable and reliable
facilities that currently do not meet the requirements of
energy services;
these guidelines will be required, within a given time frame,
(c) improve energy governance and administration; to re~align their facilities accordingly or closedown