energy 24 April 2026 Daily Monitor (Uganda)
Uganda Investigates Oil Companies for Fuel Hoarding and Price Gouging Amid Shortages
The Ugandan government has initiated probes into oil marketing companies suspected of hoarding fuel and imposing excessive prices, despite claims of sufficient national stocks. Public reports of empty pumps and rationing in Kampala and rural areas have prompted potential enforcement under the Petroleum Supply Act. Source: https://www.monitor.co.ug/uganda/news/national/-govt-launches-probe-into-oil-firms-over-fuel-hoarding-price-hikes-5435306
The Ministry of Energy has launched investigations into oil marketing companies (OMCs) over allegations of fuel hoarding and charging inflated prices. This follows widespread complaints from motorists about fuel shortages at stations in Kampala, Wakiso, and rural towns, despite official assurances of adequate supply.
Dr. Patricia Litho, Assistant Commissioner for Communications at the ministry, noted that while hoarding suspicions exist, they are unconfirmed, but enough stock has been supplied. A meeting with OMCs is set for next week, with possible actions under the Petroleum Supply Act, including license revocations, shutdowns, fines up to Shs200 million, or imprisonment.
National stocks as of April 21 include 70.5 million litres of petrol (19 days’ cover), 43.2 million diesel (12 days), and 32 million jet fuel (53 days), with more shipments expected soon. However, ground realities show long queues, selective sales, and dry pumps, especially for smaller independent dealers who rely on larger OMCs.
Since UNOC became the sole importer in July 2024, distribution favors major players’ stations, leaving rural and border areas like Arua and Tororo hardest hit. Logistics delays from Mombasa and Dar es Salaam ports exacerbate local shortages.
Economist Dr. Fred Muhumuza highlights structural issues like thin reserves and poor transparency, warning of broader economic impacts on transport and food prices. The government urges calm, promising efficient distribution, but analysts call for better coordination to resolve the crisis.
Source: Daily Monitor (Uganda)