Uganda’s state-owned oil firm, the Uganda National Oil Company (UNOC), has attributed the recent surge in fuel prices to disruptions in the supply chain but assured the public that pump prices are expected to stabilize soon.
Petrol prices have climbed to between Shs5,050 and Shs5,060 per liter in various areas, up from approximately Shs4,900 in May.
UNOC explained that the increase stems from delays along the Kenyan transport route, which serves as Uganda’s primary channel for petroleum imports.
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“To maintain steady national fuel supplies, UNOC sourced 35 million liters through Tanzania,” the company said in a statement. “However, the extended distance and elevated transportation costs slightly impacted pump prices.”
Despite the temporary price hike, UNOC emphasized that fuel availability remains stable. As of June 2, over 90 million liters of petroleum products were present in the Kenyan pipeline, with 53 million liters of petrol already en route to Uganda.
An additional 200 million liters of fuel—including petrol, diesel, and jet fuel—is expected to enter the supply chain between June 6 and 8.
“With these incoming supplies, alongside a recent decline in international Platts pricing and favorable exchange rates, pump prices are anticipated to stabilize in the near future,” UNOC added.
In 2024, Uganda imported around 2.5 billion liters of fuel—worth approximately US$2 billion (Shs6.7 trillion)—with nearly 90% routed through Kenya.
UNOC took over national fuel importation in 2023, following President Yoweri Museveni’s assent to the Petroleum Supply (Amendment) Act, which gave the company exclusive import rights. This move replaced the open tender system that had been managed by Kenya.
The shift came after Kenya adopted a government-to-government (G2G) fuel import model, which Uganda criticized for inefficiencies and inflated costs caused by numerous intermediaries.
UNOC reaffirmed its commitment to collaborating with local and regional partners to ensure a consistent fuel supply and mitigate future disruptions.
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