South Sudan Ends Kenyan Firm’s Exclusive Fuel Import Monopoly | Dawan Africa
Kenya , July 10, 2026 – South Sudan has moved to end the exclusive fuel import arrangement previously held by a Kenyan oil marketer, opening its Government-to-Government (G-to-G) petroleum import programme to additional suppliers in a move expected to increase competition, lower fuel prices and reshape regional fuel trade.
The latest policy shift means Pacific Petroleum, which has been the sole importer of petrol and diesel into South Sudan under the bilateral arrangement with Kenya, will no longer enjoy exclusive rights. Instead, Juba has nominated three additional oil marketing companies to participate in the programme beginning August 2026.
The decision marks a significant change in South Sudan’s fuel import strategy, coming just months after the country adopted the Government-to-Government framework modelled on Kenya’s own fuel import system.
Under the existing arrangement, petroleum products destined for South Sudan have been imported through Kenya’s G-to-G programme before being transported via the Northern Corridor to Juba. Pacific Petroleum was designated as the sole importer responsible for bringing in fuel and supplying licensed oil marketers within South Sudan.
South Sudanese authorities say expanding the number of importers is intended to foster competition in the downstream petroleum sector, improve supply reliability and ultimately reduce fuel prices for consumers.
The move follows weeks of controversy surrounding the exclusive arrangement. Oil marketers operating in South Sudan had complained that relying on a single importer reduced competition and contributed to higher fuel costs, while independent dealers argued that the monopoly restricted market access.
The exclusive deal has also faced legal challenges.
A public interest petition filed before South Sudan’s Court of Appeal questioned the legality of awarding exclusive import rights to one company without competitive procurement. The court subsequently issued interim orders suspending aspects of the arrangement pending determination of the case, with petitioners arguing that the framework undermined fair competition and disadvantaged other licensed oil marketing companies.
The policy reversal also comes after recent tensions within the fuel supply chain.
Last month, South Sudan warned oil marketing companies against importing petroleum products outside the approved Government-to-Government framework, threatening to impound fuel cargoes and revoke operating licences for firms found violating the arrangement. Authorities accused some traders of bypassing the designated import channel by diverting cargoes intended for neighbouring markets into South Sudan.
Kenyan authorities had also acknowledged operational challenges affecting the programme.