Uganda assures public of stable fuel supply amid Middle East tensions

__________________

The government has reassured the public and business community that Uganda’s fuel supply remains stable despite rising tensions in the Middle East that have raised fears of potential disruptions to global petroleum supply routes.

In a joint statement issued on March 2, the Ministry of Energy and Mineral Development and the Uganda National Oil Company (UNOC) said the country has adequate contingency measures in place to ensure the uninterrupted supply of petroleum products.

The assurance follows recent reports of instability in the Middle East and concerns over possible disruptions along key international shipping routes, particularly the Strait of Hormuz — a major global oil transit corridor located between Iran and Oman.

It is estimated that approximately 13% of the African continent's total imports pass directly through the Strait of Hormuz. While a significant portion of the continent's overall trade, this figure underscores a high structural vulnerability for African economies—particularly in East and West Africa—which are net importers of refined petroleum products.

Energy officials said they are closely monitoring developments in the region but emphasised that Uganda’s supply chain remains secure.

“Uganda will continue to have a reliable supply of petroleum products,” the statement said, adding that both government and industry stakeholders are taking proactive steps to safeguard supply stability.

According to the statement, UNOC and its international supply partner, Vitol, are actively monitoring the evolving situation and have already put in place mechanisms to prevent disruptions to fuel imports into the country.

Officials explained that Uganda’s fuel procurement system does not rely solely on supplies originating from one geographic region, which reduces vulnerability to geopolitical shocks affecting global markets.

The government noted that suppliers are able to source petroleum cargo from alternative markets and reroute shipments where necessary to ensure that deliveries reach Uganda without interruption.

“UNOC and its supply partner are keenly following the events as they unfold and wish to reassure the public that all appropriate measures are being taken to ensure uninterrupted supply of petroleum products into the country,” the statement noted.

Authorities further revealed that scheduled cargo deliveries for March 2026 remain on track and that contingency plans have been activated to mitigate any immediate impacts should the global situation worsen.

Energy sector analysts say such preparedness is critical for landlocked countries like Uganda that depend on international shipping routes and regional transport corridors for petroleum imports.

Uganda imports all its refined petroleum products, mainly through regional supply chains linked to the Kenyan coast, before transportation inland through road and pipeline systems.

Despite the ongoing geopolitical tensions, the Ministry of Energy said there is currently no indication of imminent supply shortages or disruptions in the country.

Officials, therefore, urged the public, fuel dealers, and other market participants to remain calm and avoid speculative behaviour that could trigger unnecessary panic in the market.

“With stable supply, it is expected that pump prices should remain relatively the same,” the statement added.

Fuel price stability is a critical concern for Uganda’s economy as petroleum products influence transportation costs, food prices, and overall inflation.

In the past, global supply disruptions have led to sudden spikes in domestic fuel prices, affecting both households and businesses.

Officials noted that their actions are guided by provisions under the Petroleum Supply Act, which mandates the government to ensure adequate and reliable petroleum product availability nationwide.

“The Government of Uganda remains committed to implementing its mandate under the Petroleum Supply Act and contributing to security of supply of petroleum products in the country,” the statement concluded.

Energy sector observers say the latest assurance from government is intended to prevent market anxiety and reinforce confidence among consumers and industry players amid growing global uncertainty in the oil market.

Authorities say they will continue monitoring developments in the Middle East and will provide updates should the international situation change in a way that could affect Uganda’s fuel supply chain.

About 20% of the world's total oil and liquefied natural gas (LNG) flows through the Strait of Hormuz daily.