Govt assures on fuel supply

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The government has made assurances that there is no cause for alarm over the availability of oil products in the country as the war in the Middle East rages on.

Government assurances are premised on what it says are available stocks and incoming shipments that are expected to deliver fuel to Uganda by the end of next month.

The war that commenced with Israel and USA’s attack on Iran has since affected the global oil value chains as the passage of shipments through the Strait of Hormuz, which is used to transit about 20% of the global oil consumption, including supplies from the Middle East, has been affected.

Additionally, at least five major oil-producing companies from countries like Qatar, Kuwait and Iraq have declared force majeure, a legal provision included in contracts to protect parties from being penalised when unforeseen and uncontrollable events make it impossible to fulfil their obligations, due to attacks on their energy infrastructure.

These developments have sent shockwaves through Uganda’s populace, raising fears that they will eventually translate into higher pump prices in the local market.

However, the Ugandan government insists that there is no need for panic and that there is no justification for the local oil marketing companies to raise pump prices yet.

In a March 30-dated statement jointly issued by the Ministry of Energy & Mineral Development and the Uganda National Oil Company (UNOC), the government said Uganda’s fuel stock levels and the inland supply chain as of March 27, remained stable and sufficient to meet the short-term national demand.

“The available stocks for distribution to Uganda were about: 81 million litres of petrol, 80 million litres of diesel; and about 18.5 million litres of Jet A-1. These volumes translate to approximately 22 days of stock cover for petrol, 23 days of stock cover for diesel, and 30 days of stock cover for Jet A-1: meaning that these stocks take Uganda into the end of April 2026,” the statement read.

Based on the available data, Uganda consumes a combined total of about 7.76 million litres of fuel daily.

The statement further explained that the Energy Ministry, through UNOC, is scheduled to receive confirmed vessel deliveries from the end of March 2026 into April 2026, mainly to the Mombasa port ‘with quantities of petroleum products destined to Uganda, indicating a favourable supply chain’.

These, the statement added, are to be complemented with supplies through Tanzania where the multiple available ports of Tanga, Dar-es-Salaam and Mtwara to enhance security of supply.

“The expected additional quantities that should be accessed from the beginning of April 2026 add up to about 195 million litres of petrol, 155 million litres of diesel, and 24 million litres of Jet A-1; translating to additional days of stock cover of 52 days for Petrol, 44 days for Diesel, and 39 days for Jet A-1.

We, therefore, wish to reassure the key business partners, including the transportation sector, aviation industry, the business community, and the general public that Uganda’s fuel supply remains secure, stable, and continuous despite the ongoing Middle East conflict,” the statement partly read.

The statement, co-signed by Dr Patricia Litho, the ministry’s assistant commissioner, communications, and information management and Tony Otoa, UNOC’s chief corporate affairs, said the guaranteed supply is facilitated by the strong presence of UNOC’s supply partner in alternative supply sources in the world, away from the currently troubled Middle East.

“While the supply remains stable, the Ministry, working together with UNOC, will continue to monitor the impact of other parameters, including forex exchange and international prices, on the resulting pump price.

UNOC, with the support and guidance of the Ministry of Energy and Mineral Development, continues to work very closely with its supply partner to ensure continuity of supply of petroleum products to Uganda, thereby maintaining the demonstrated supply resilience despite ongoing global market uncertainties,” the statement said.

Despite the assurances, there have been slight increases in the pump prices with petrol and diesel trading at an average of sh5,300 and sh5,000 per litre.

Last week, Energy Minister Ruth Nankabirwa warned oil marketing companies against unjustifiably raising pump prices.

“We are cautioning fuel stations against using the conflict in the Middle East as an excuse to escalate fuel prices. We shall continue to monitor the fuel prices across the world, and we shall keep updating you,” Nankabirwa said last week.