Kyrgyzstan Explores Uganda’s Fuel Marking Program: A Pathway to Strengthen Domestic Revenue Mobilization

A delegation from Kyrgyzstan is in the country on a benchmarking visit to Uganda’s Fuel Marking and Quality Control Program (FMQP). Kyrgyzstan, officially the Kyrgyz Republic, is a landlocked country in Central Asia, in the Tian Shan and Pamir mountain ranges.

Uganda has, since November 2012, implemented FMQP to minimise/eliminate smuggling or dumping of transit petroleum, control fuel adulteration, and promote a level playing field in downstream petroleum operations by eliminating unfair trading
practices. The program is implemented by the Ministry of Energy and Mineral Development and the Uganda National Bureau of Standards.

A six-man team from Kyrgyzstan’s State Tax Service under the Ministry of Finance interacted with the MEMD technocrats at Amber House in Kampala on Tuesday. It also visited the Downstream Laboratory at the Ministry, selected fuel stations, border operations at the Malaba and Busia border points, and interacted with SICPA, the Fuel Marking in Uganda.

While welcoming the team to the country, Rev. Frank Tukwasibwe, the Commissioner of the Petroleum Supply Department at MEMD, said the fuel marking programme had helped Uganda to curb smuggling up to 99.2%, and the government can recover revenue.

“Fuel marking helps us ensure free and fair competition because fuel meant for Uganda ends up in Uganda,” said Rev. Tukwasibwe, adding that many countries are coming to Uganda for benchmarking.

The Kyrgyzstan team leader, Bekbolot Aliev (Deputy Chairman of the State Tax Service), said that his government is embarking on reforms meant to improve domestic revenue mobilisation, for which “the Fuel Marking Program is among the reforms under consideration”.

“To better appreciate other perspectives, learn international experiences and perform due diligence on the fuel marking being implemented in other countries, the State Tax Service decided to undertake this visit to Uganda” He added.