An Analysis of the Impact of Security of Oil Supply on the Price of Petroleum Products in Uganda

Abstract

This study analyses the impact of security of oil supply on the price of petroleum products in Uganda. This task was accomplished by analyzing the oil flow in Uganda, oil price determination, oil price cycles, factors that disrupt the supply of oil in Uganda. The study also looked at the security of oil supply in the country. Once the results were in, the research examined the country’s oil and gas dynamics through private oil companies and government companies. The area of study was mainly a private owned oil company which was Meru Petroleum (U) Limited with a sample size of 153 respondents who were selected using purposive sampling. The study revealed that there are many factors that disrupt the supply of oil and they include OPEC decisions, logistics, geo-political tensions, natural disasters, technical accidents and others. In addition, the study discovered that oil flow disruption is in relation to many challenges for example high cost of oil truck maintenance, stringent technical and legal requirements, and lack of working capital.