(JUBA) – The Ministry of Petroleum convened a high level meeting with South Sudan Fuel Supply Company Ltd and key Oil Marketing Companies under the theme, “Together We Secure a Sustainable Fuel Supply in South Sudan.”
The meeting on 20 November 2025 focused on the framework agreement between the Governments of South Sudan and Kenya. This government to government partnership is designed to provide a stable, secure, and cost effective supply of refined petroleum products to South Sudan.
The agreement aims to meet South Sudan’s energy security needs, ensure uninterrupted fuel availability, mitigate external supply chain risks, and stabilise domestic fuel prices.
The agreement leverages Kenya’s well developed logistics and port infrastructure, transforming it into South Sudan’s primary gateway for refined fuel imports.
The Kenyan government has committed to prioritise South Sudan’s petroleum consignments through the Port of Mombasa and the Northern Corridor transport network. This includes dedicated access to pipeline capacity and storage facilities in Kenya.
The framework sets annual minimum and maximum indicative volumes for various petroleum products, providing predictability for both countries’ planning and procurement processes. It also introduces a transparent, formula based pricing system benchmarked against international commodity prices, including a defined margin for handling and transit.
A mechanism for managing foreign currency exposure through revolving Letters of Credit or agreed credit periods is included to ease pressure on South Sudan’s foreign exchange reserves.
Strategically, the agreement diversifies South Sudan’s fuel supply routes, reduces reliance on less secure corridors, and enhances macroeconomic stability by standardising procurement costs. The partnership is expected to provide energy security, stabilise the domestic market, support currency stability, promote economic development, and empower the local business community.
Features of the South Sudan-Kenya Fuel Supply Framework
| Feature | Details |
|---|---|
| Partnership Type | Government to Government |
| Primary Gateway | Port of Mombasa, Northern Corridor |
| Products Covered | Refined petroleum products |
| Supply Stability | Annual minimum and maximum volumes defined |
| Pricing | Formula based, benchmarked to international prices |
| Currency Management | Letters of Credit or agreed credit period |
| Strategic Benefits | Diversifies supply routes, stabilises costs, enhances energy security |
| Economic Impact | Supports market stability, currency stability, business empowerment |
The agreement represents a major step in securing South Sudan’s fuel supply and supporting the country’s broader economic and energy development goals, according to the Ministry of Petroleum.
