(Ecofin Agency) - In Kampala, the World Bank has today advised the governments of Uganda, Kenya and Tanzania, to develop insurance measures to protect against unstable oil prices as they get ready to commence production.

At both national and global markets, the prices of oil and gas regularly affect the cost of goods and services. While Uganda has oil and gas deposits, Kenya has oil and Tanzania has huge deposits of gas. The three countries are getting ready to start production for both the local and global markets.

Dr. Jean-Pascal Nganou World Bank’s Senior Economist Uganda country office, in his speech at the regional oil and gas conference in Entebbe stated that the prices of oil and gas will always be unstable and countries should make themselves ready to handle the consequence.

He said the countries should be ready to diversify their economies instead of lining up every development agenda to oil and gas revenue and secure part of the future oil incomes as several governments, have decided on a variety of oil revenue saving mechanisms.

“Uganda, Tanzania and Kenya should review these mechanisms, analyse the results achieved, and make their own choices based on realistic assessment of their own situation, needs and risks”, He added.

The World Bank in its current report was confident that oil prices will pick-up in the global market.

“Our commodity price specialists believe that the price of oil will rise again and most of the projections in Uganda are based on international crude oil price of $90 (Shs319, 500) per barrel. We may be right, we may be wrong and this is one of the lessons for a good management of future oil revenue”, Nganou told Daily Monitor.