UNOC explains why some stations lack fuel; shipments expected May-June

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For motorists in some parts of Uganda, the past few days have come with an unsettling routine: driving from one petrol station to another in search of fuel, only to find empty pumps or unexpectedly higher prices.

Yet government officials insist there is no national fuel shortage.

In a press statement issued on April 21, the Uganda National Oil Company (UNOC), working with the Ministry of Energy and Mineral Development, said Uganda’s fuel supply remains “stable, sufficient, and well-managed,” despite isolated disruptions at some retail stations.

The reassurance comes as reports emerge from upcountry towns of temporary stockouts and sharp price increases, particularly in border areas such as Arua and Tororo.

According to UNOC, the problem is less about national scarcity and more about how fuel is moving through the supply chain.

“The Ministry of Energy and Mineral Development has taken note of some retail stations occasionally running out of fuel, and this is mainly attributed to logistical operations affecting individual Oil Marketing Companies within the ecosystem of the supply chain,” the statement said.

In practical terms, that means some stations may be struggling with transport schedules, delayed deliveries, or company-specific distribution issues, even while the country as a whole has enough fuel in storage.

As of April 20, Uganda had 70.5 million litres of petrol in stock, equivalent to 19 days of supply. Diesel stocks stood at 43.2 million litres, or 12 days of cover, while jet fuel reserves were at 32 million litres, enough for 53 days, according to UNOC.

Those figures suggest that Uganda’s core reserves remain within normal operating levels.

More fuel is also on the way. UNOC said confirmed shipments expected between May and June will significantly strengthen supply. These include 183 million litres of petrol, enough for an additional 49 days, 258 million litres of diesel, equivalent to 74 more days, and 23 million litres of jet fuel.

“These projections demonstrate strong forward supply planning and provide assurance of the continued availability of petroleum products nationwide,” the statement noted.

So why are some motorists paying more? The answer lies partly in geography.

Border towns such as Arua and Tororo often experience higher demand because fuel purchased there can serve both Ugandan consumers and cross-border markets. When demand rises suddenly, prices at some stations can climb faster than elsewhere.

UNOC said the increases are “largely driven by the natural circumstance of cross-border increased demand.”

However, officials also signalled concern about possible opportunistic pricing.

“Individual Oil Marketing Companies have been engaged where unjustified increases in retail pricing have been noticed,” the statement added.

That suggests the government is monitoring whether some retailers are using local shortages or panic buying to raise prices beyond what market conditions justify.

Fuel prices in Uganda are also shaped by forces far beyond the country’s borders. Because Uganda imports all refined petroleum products, pump prices can rise when global crude prices jump, when the shilling weakens against the dollar, or when geopolitical tensions disrupt shipping routes.

UNOC acknowledged those pressures, saying pump prices may fluctuate due to “global oil market dynamics, exchange rate movements, and geopolitical developments.”

For ordinary Ugandans, however, fuel prices are never just about fuel.

When petrol or diesel rises sharply, transport fares often follow. Traders pay more to move goods. Food prices can edge upward. Farmers face higher costs getting produce to market. In many households, fuel inflation is felt quickly and directly.

That is why even temporary shortages in a few towns can trigger wider anxiety. Government officials are now urging calm, saying there is no need for panic buying or hoarding.

“The public is therefore advised to remain calm and avoid panic purchases because there is no cause for concern regarding fuel availability,” UNOC said.