Unoc starts discharging 100 million litres of fuel

Uganda National Oil Company (Unoc) said on Wednesday it had begun discharging nearly 100 million litres of fuel at the port of Mombasa, with the first consignments expected to reach Uganda within days amid rising pump prices.

The shipment, offloaded on May 5, comprises 47.5 million litres of petrol and 52.1 million litres of diesel imported under a government-to-government arrangement, Unoc Chief Corporate Affairs Officer Tony Otoa said.

“Discharge commenced on Tuesday 5th May and is progressing well. We expect the first trucks to cross Malaba within a few hours, which should start feeding into national stock before close of week,” Otoa said.

Fuel prices have edged higher in recent days. Outlets operated by Shell posted petrol at Shs5,720 per litre on Wednesday, up from Shs5,500 last week, while TotalEnergies stations and other dealers sold petrol between Shs5,650 and Shs5,680. Diesel traded at Shs5,200–Shs5,300.

Energy Minister Ruth Nankabirwa had earlier warned of volatility driven by global market forces, saying government efforts are focused on ensuring supply rather than controlling prices.

“The government cannot dictate international crude prices or the strength of the dollar. What we can do is ensure security of supply,” she said, adding that authorities would monitor pricing to prevent speculation.

Analysts attribute the latest price increases to a weakening Ugandan shilling — from about Shs3,600 to Shs3,750 per dollar in recent months — and rising global oil prices linked to tensions around Iran and the Strait of Hormuz, a key oil transit route.

Unoc became Uganda’s sole fuel importer in January 2024, a move aimed at reducing intermediaries and stabilising supply. The latest 99.6 million-litre consignment is part of that arrangement.

The Ministry of Energy estimates national fuel consumption at about 6.5 million litres per day, meaning the shipment could cover roughly two weeks of demand.

However, transport costs have already filtered through to consumers. Some taxi operators have increased upcountry fares by about Shs5,000, citing higher pump prices.

Unoc said its direct import model is intended to reduce long-term volatility by improving procurement terms and building strategic reserves.

“We can’t detach Uganda from global fundamentals overnight, but controlling the supply chain gives us better tools to manage shocks,” Otoa said.