Fuel prices in Uganda have not experienced any fluctuations over the past month, according to a statement made by Minister of Energy and Mineral Development, Ruth Nankabirwa. Addressing concerns raised by Members of Parliament (MPs) regarding the rising fuel costs, Nankabirwa assured that a consistent supply would be maintained.
As of now, the pump price for petrol remains at UGX 5,400 per litre.
During her address to Parliament on October 25, 2023, Nankabirwa explained that the pricing of petroleum products in Uganda follows a downstream liberal market model, with prices determined by the forces of demand and supply.
The minister also revealed plans for Uganda National Oil Company (UNOC) to become the primary supplier of fuel to all oil marketing companies starting in January 2024. This transition is expected to enhance the supply chain and foster price stability.
Nankabirwa elaborated on the need for an amendment to the Petroleum Supply Act to enable UNOC to directly import fuel from international markets. Under this proposed system, fuel would be delivered to the Jinja fuel reserves and then distributed across the country.
Addressing concerns about Uganda’s dependency on Kenya’s oil dealers, Nankabirwa emphasized the inefficiency of the existing open tender system, controlled by Kenya, which prioritizes their domestic companies. She cited the necessity of amending the law to facilitate UNOC’s direct importation and bypassing the complex layers imposed by the Kenyan government, which contribute to higher prices in Uganda.
Faith Loru, MP from Napak, expressed her concern over Uganda’s reliance on Kenyan oil dealers and urged decisive action to address the issue.
