Uganda fuel prices rise modestly amid global tensions

Kampala, Uganda | THE INDEPENDENT | Uganda’s fuel prices have edged up by around 5% amid rising tensions in the Middle East, but strong reserves and reforms in the country’s procurement system have limited the impact on consumers.

Petrol and diesel remain below previous highs recorded before the Uganda National Oil Company (UNOC) assumed responsibility for bulk fuel procurement in July 2024. As of late March, petrol averaged Shs 4,950 per litre, while diesel stood at Shs 4,690 — well below peaks of Shs 5,600 and Shs 5,300 respectively.

The latest market volatility follows military action involving the United States and Israel against Iran, raising concerns over supply disruptions along the Strait of Hormuz, a key route for roughly 20% of global oil shipments.

Energy Minister Ruth Nankabirwa said the recent price movements at the pump were not directly linked to supply costs, with UNOC maintaining stable prices. Analysts point instead to foreign exchange pressures and market sentiment as key drivers.

UNOC confirmed that fuel stocks remain adequate, with current and incoming supplies sufficient to meet national demand through April. The company’s centralised procurement model has cushioned Uganda from sharper global shocks, keeping fuel prices competitive within the region.