Overview:
Speaking at the 12th National Oil and Gas Convention at Speke Resort Munyonyo, Nankabirwa said government investigations had found that while national supply remains stable, fuel prices in upcountry areas have risen sharply compared to Kampala and surrounding regions.
The Minister of Energy and Mineral Development, Ruth Nankabirwa, has warned fuel marketing companies against allegedly fuelling artificial shortages and price hikes, insisting that Uganda has adequate fuel stocks for the local market.
Speaking at the 12th National Oil and Gas Convention at Speke Resort Munyonyo, Nankabirwa said government investigations had found that while national supply remains stable, fuel prices in upcountry areas have risen sharply compared to Kampala and surrounding regions.
She accused some marketing companies of distorting distribution and pricing patterns, warning that sanctions could follow if malpractice continues.
“We are seeing a situation where the countryside is suffering more than Kampala, yet Uganda has sufficient fuel,” she said.
The minister noted that the Uganda National Oil Company (UNOC) procured current fuel reserves as early as January at prevailing international prices and continues to supply marketing companies at those same rates.
“This has prompted us to consider sanctions against companies that are distorting price and supply trends,” she added.
Strong reserves, says ministry
Nankabirwa moved to reassure the public that the country is not facing a fuel shortage, saying Uganda currently holds adequate stocks supported by a steady import pipeline.
She revealed that by mid-April 2026, an additional shipment of about 119 million litres of petrol had been offloaded at the port of Mombasa, boosting national reserves.
Between mid-April and mid-June 2026, Uganda is expected to receive further imports including approximately 163 million litres of petrol, over 200 million litres of diesel, and 22.4 million litres of Jet A-1 fuel.
“These volumes, combined with existing stocks, provide cover of up to 67 days for petrol, 84 days for diesel, and 89 days for jet fuel,” she said, noting that national daily consumption stands at about 8 million litres.
She added that recently discharged cargoes were already being distributed to fuel stations across the country and that supply would stabilise further in the coming days.
Smuggling and diversion concerns
The minister also raised concern over alleged diversion of fuel, saying investigations had found cases where trucks loaded at border towns such as Arua and Kasese were ferrying fuel into the Democratic Republic of Congo.
She said the fuel in question was intended for the Ugandan market and warned that such practices were illegal.
“There are also cases of fuel being repackaged into jerrycans and transported on boda bodas,” she said, cautioning fuel station operators involved in such activities.
She further advised against panic buying, especially among households storing fuel in jerrycans, insisting there is no national shortage.
Price pressure ahead
Despite assurances of adequate supply, Nankabirwa confirmed that fuel prices are expected to rise in the coming months as new shipments arrive under higher global oil prices.
She explained that Uganda National Oil Company is now purchasing fuel refined from more expensive crude oil, following a rise in global prices since January.
“Even refiners have increased the cost of refining from between two and five dollars per barrel in January to more than 50 dollars now,” she said.
“As a result, expect fuel prices between UNOC and the marketers to increase in May.”
However, she said government would continue engaging marketing companies to ensure prices remain “reasonable and aligned with global trends,” while avoiding unnecessary spikes.
Call for calm
The minister urged the public to remain calm, reiterating that Uganda is not experiencing a fuel crisis despite rising retail prices in some areas.
She said government is closely monitoring the supply chain to ensure distribution remains stable nationwide.