Rising fuel prices should not be politicised

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OPINION

By Patricia K. Litho

Ugandans have in recent weeks experienced an increase in fuel pump prices, triggering concern among households, transport operators, manufacturers, farmers and businesses. The rising cost of petrol, diesel and other petroleum products has naturally generated debate across the country because fuel prices directly affect the cost of transport, food, electricity generation, production and other essential services.

However, while the impact is being felt locally, the public needs to understand that the current rise in fuel prices is largely being driven by global market forces and geopolitical developments beyond Uganda’s direct control. The issue should, therefore, be approached with objectivity and factual understanding rather than political sensationalism or misinformation.

According to the Ministry of Energy and Mineral Development and Uganda National Oil Company, the ongoing instability in the Middle East has significantly disrupted global oil supply chains. The Middle East remains one of the world’s most important oil-producing regions, and any conflict or instability in the area immediately affects global crude oil prices and fuel markets.

Particular concern has centred around the Strait of Hormuz, one of the world’s most strategic oil transit routes through which a substantial portion of global oil exports pass daily. Disruptions, security concerns and increased military tensions in the region have pushed up international crude oil prices, freight charges and marine insurance premiums. These increases eventually affect the final cost of fuel imported into countries across Africa, Asia and Europe. Uganda, like many countries in East Africa, imports a significant percentage of its petroleum products from the Arabian Gulf region through international supply chains linked to global markets. This means that any increase in global fuel prices inevitably affects domestic pump prices.

The current situation is, therefore, not unique to Uganda. Countries across the region, including Kenya, Tanzania, Rwanda and Burundi, have also registered increases in retail pump prices over the same period. In fact, fuel prices have been rising in many parts of the world due to supply chain uncertainties, global demand pressures and exchange rate fluctuations.

It is, therefore, misleading to present the current price increases as a uniquely Ugandan challenge or purely a result of local political decisions. The reality is that Uganda operates within a highly interconnected global petroleum market where international events significantly influence local fuel pricing.

Government has consistently explained that Uganda operates a liberalised petroleum market where prices are determined by the forces of demand and supply rather than direct government price controls. Under this arrangement, oil marketing companies adjust prices based on international market conditions, importation costs, taxes, exchange rates, freight charges and operational expenses.

Even so, the Government continues to closely monitor the market to ensure there is no artificial scarcity, hoarding, profiteering or smuggling that could worsen the situation for consumers. Regulatory and security agencies remain vigilant to ensure fuel supply stability across the country.

Importantly, Uganda National Oil Company, working with international supply partners such as Vitol Bahrain, has continued to secure petroleum products from diversified global sources, including West Africa, Europe, India and the Americas, in order to maintain continuity of supply despite global disruptions. Government has also reassured the country that Uganda continues to maintain adequate fuel reserves and that additional fuel shipments are already in transit through both the Kenyan and Tanzanian routes. This intervention is intended to prevent prolonged shortages and maintain national energy security.

The temporary fuel shortages previously experienced in some border areas were also partly linked to increased cross-border demand due to comparatively lower fuel prices in Uganda than in some neighbouring countries. Such regional market dynamics are common in liberalised fuel economies. Beyond managing the current challenge, the Government is investing in long-term strategic measures aimed at strengthening Uganda’s energy security and reducing vulnerability to external shocks.

These interventions include expansion of national fuel storage infrastructure in strategic locations, such as Jinja, Mpigi and the Lake Victoria logistics corridor, to improve national fuel reserves and supply management. Government is also advancing the Uganda Refinery Project, which is expected to significantly strengthen the country’s long-term petroleum security by enabling local refining of crude oil once operational. Additional petroleum exploration and licensing rounds are expected to support future production and energy sustainability.

At the same time, the country continues to invest in alternative energy sources, including hydroelectricity, solar energy, electric mobility and biofuels as part of the broader energy transition agenda aimed at reducing dependence on imported petroleum products over time.

Fuel prices affect all citizens regardless of political affiliation, religion or social status. Turning a global economic challenge into a political contest only creates unnecessary panic, misinformation and public anxiety. What Uganda requires at this moment is calm leadership, responsible public discourse and accurate information based on facts rather than speculation.

Citizens should, therefore, avoid panic buying and instead rely on official communication channels for verified updates regarding fuel supply and pricing trends. While the current situation remains challenging, the country continues to implement both short-term and long-term measures to maintain fuel supply stability and protect the economy from severe disruptions.

Ultimately, the rise in fuel prices is a reflection of the realities of an interconnected global economy. Understanding this context is critical if the country is to respond constructively and responsibly to the current situation.

The writer is the assistant commissioner communication, Ministry of Energy and Mineral Development