Business 6 April 2026 Daily Monitor (Uganda)
Uganda's Key Oil Supplier Faces Disruptions from Iran Strait Blockade
Vitol Bahrain, the exclusive petroleum supplier for Uganda National Oil Company, is grappling with severe supply chain issues due to Iran's restrictions on the Strait of Hormuz amid escalating US-Israel conflict. Executives are visiting Uganda to reassure officials on continued fuel deliveries despite skyrocketing costs and risks. Source: https://www.monitor.co.ug/uganda/news/national/ugandan-bulk-oil-supplier-suffers-major-setbacks-in-iran-war-5414906
A Bahrain-based subsidiary of global oil trader Vitol, known as Vitol Bahrain E.C., serves as the primary supplier for Uganda National Oil Company’s petroleum imports. The company has encountered significant challenges following Iran’s decision to limit access through the Strait of Hormuz, a vital chokepoint for a quarter of the world’s seaborne oil trade.
This restriction stems from reprisal actions against US and Israel strikes that began on February 28, including attacks on oil infrastructure in the UAE’s Fujairah port. Vitol has relocated staff from Bahrain and dealt with bombed tankers, resulting in crew casualties and insurance costs surging over sixfold.
Senior Vitol executives are scheduled to meet Ugandan officials from UNOC, the Ministry of Energy, and possibly President Museveni this week. Discussions aim to address rising shipping expenses and ensure steady supplies of petrol, diesel, kerosene, and jet fuel routed via Mombasa.
Ministry of Energy Permanent Secretary Irene Batebe noted ongoing talks with Vitol, confirming supplies secured for April and May through alternative routes. UNOC’s Tony Otoa echoed this, stating no impacts on scheduled consignments despite global volatilities.
The partnership, established under the 2023 Petroleum Supply Amendment Act, bypassed over 120 middlemen for direct UAE-to-Mombasa shipments. However, fuel prices in Uganda are climbing, with proposals for new levies amid treasury strains.
Experts warn that even if the strait reopens, supply lags could persist for months due to tanker travel times.
Source: Daily Monitor