Government Speaks Out As Fuel Prices Surge Across The Country

The government has said the recent rise in fuel prices and temporary shortages in some parts of Uganda are largely linked to the ongoing conflict in the Middle East and disruptions along key global oil supply routes.

Speaking at the Uganda Media Centre on May 22, Permanent Secretary in the Ministry of Energy and Mineral Development, Irene Pauline Bateebe, explained that Uganda’s fuel market has been affected by instability around the Strait of Hormuz, one of the world’s busiest oil shipping channels.

According to Bateebe, much of the fuel imported into East Africa comes from the Arabian Gulf, meaning any disruption in the region directly affects transport costs, insurance charges, and global oil prices. Those increased costs eventually impact fuel prices at pumps across Uganda.

“The East African region has been particularly affected because a substantial proportion of petroleum imports originate from the Arabian Gulf,” Bateebe said.

The government noted that fuel prices in Uganda have risen in recent weeks due to global supply challenges, higher importation costs, exchange rate fluctuations, and growing regional demand.

Officials also revealed that Uganda’s relatively lower fuel prices compared to some neighbouring countries created increased cross-border demand, especially in border districts. This led to abnormal pressure on fuel stocks in areas such as Arua and Tororo, causing temporary shortages at some filling stations.

Despite the shortages reported in some towns, the government insists the country still has sufficient fuel reserves.“Government and UNOC have since restored supply stability and strengthened ongoing importation arrangements,” Bateebe said.

The Uganda National Oil Company (UNOC), working together with international supplier Vitol, has reportedly expanded its fuel sourcing beyond the Gulf region to include West Africa, Europe, India, and the Americas in order to reduce dependence on a single supply route.

Uganda currently imports all its refined petroleum products, making the country vulnerable to global market disruptions and price shocks.

The government also emphasized that Uganda’s fuel market is liberalized, meaning pump prices are determined by Oil Marketing Companies based on import costs, taxes, transport expenses, exchange rates, and market demand rather than direct government control.

However, authorities say they are closely monitoring the situation to prevent smuggling, fuel diversion, and unfair pricing practices.

“Government continues to closely monitor the market to ensure continuity of supply, discourage smuggling and diversion of products, and protect consumers against exploitative practices,” Bateebe said.

Officials warned that rising fuel prices affect more than just transport costs, noting that higher diesel prices can also increase food prices, transport fares, and the overall cost of living for ordinary households.

The government has now urged Ugandans to remain calm and ignore what it described as misleading information circulating online about widespread fuel scarcity.

“Uganda continues to maintain adequate stock cover and regular product deliveries through both the Kenya and Tanzania supply routes,” Bateebe said.