Ugandan and Kenyan energy ministry officials have held talks in the western Kenyan town of Eldoret over restrictions by the Kenyan Revenue Authority (KRA) and Kenya Pipeline Company (KPC) that affected oil supplies to the landlocked country.

Fred Kabagambe, the permanent secretary in Uganda's Ministry of Energy, was quoted by local press as saying on Friday that KRA's demand for cash payment would limit working capital of Ugandan oil importers.

He said Uganda requires five million liters a day to sustain the rising demand of oil products but due to restrictions by KRA and KPC, the country receives only 1.8 million liters of oil.

Kabagambe said KPC's failure to allow exporters access fuel in its Nairobi and Nakuru depots had also affected supply.

His Kenyan counterpart Patrick Nyoike said the complaints would be addressed urgently. "Our main concern was to ensure uninterrupted flow of fuel supply to Uganda," he said.

Meanwhile, there is an acute fuel shortage in northwestern Uganda and some parts of southern Sudan since January 10, prompting illegal fuel vendors to hike prices by more than a half.

"We have only one petrol station and many customers. The fuel has delayed from the source," a pump attendant in the northwestern Ugandan district of Moyo was quoted as saying.

In Kampala, fuel dealers have increase the price of diesel. By Thursday evening some filling stations had increases the price of diesel from 1,790 shillings (98 U.S. cents) to 1,870 shillings ( 103 cents) per liter. Others had increased their prices from 1,850 shillings (102 cents) to 1,900 shillings (109 cents) per liter.

Source: Xinhua