Ten years after liberalizing petroleum marketing in East Africa

Abstract

The three East African countries; Kenya, Uganda, and Tanzania are net importers of petroleum products. The imports constitute a significant portion of the countries import bill. Petroleum fuels are also used widely in the productive sectors of the economy. The transport sector, for instance, is almost entirely dependent on petroleum fuels. High petroleum prices adversely affect the growth of the countries economies. Petroleum prices are mainly determined by the international price of crude oil. The East African economies are therefore vulnerable to global events that affect the international oil prices. This is evident by the impacts of the past oil crises on the economic performance of the three countries.