Oil & Gas

Uganda is currently facing a spike in fuel prices, with the Uganda National Oil Company (UNOC) confirming on Tuesday that “temporary disruptions” in petroleum supply have caused gasoline prices in Kampala to climb to 5,000 shillings per liter, up from 4,700 shillings in December 2024.

The disruption is largely linked to logistical delays through Kenya in May 2025, forcing UNOC to reroute supplies via Tanzania. While this alternative route helped sustain product availability—bringing in around 35 million liters—the higher transportation costs contributed to the marginal pump price hike.

In a bid to stabilize the situation, UNOC reported that by June 2, over 90 million liters of petroleum products had reached the Kenya Pipeline system, with 53 million liters of gasoline already being loaded for Uganda. Furthermore, between June 6–8, an additional 200 million liters of fuel (gasoline, diesel, Jet A-1) will be made available to Ugandan Oil Marketing Companies (OMCs).

UNOC expressed confidence that this steady inflow, coupled with falling global prices and a favorable exchange rate, will restore supply reliability and stabilize prices. Since becoming Uganda’s sole fuel importer under the 2023 Petroleum Supply (Amendment) Act, UNOC has imported major fuel consignments via Mombasa—including 58,000 metric tons of gasoline and 80,000 metric tons of diesel in July 2024.