Energy Minister Nankabirwa Alerts Ugandans to Impending Fuel Price Hikes Amid Global Tensions

Uganda’s Minister of Energy and Mineral Development, Ruth Nankabirwa, has cautioned that fuel prices are likely to increase in the coming weeks, driven by escalating global crude oil costs. This follows Iran’s closure of the Strait of Hormuz in response to US naval actions amid broader Middle East tensions.

Speaking at the 11th Oil and Gas Convention in Kampala, Nankabirwa detailed upcoming imports of 163 million litres of petrol, over 200 million litres of diesel, and 22.4 million litres of jet fuel by mid-June. Combined with current reserves, these ensure 67 days’ supply for petrol, 84 for diesel, and 89 for jet fuel based on daily consumption of eight million litres.

She dismissed widespread shortages, attributing isolated stock-outs at pumps to logistical and supply chain hiccups rather than national deficits. Border districts like Arua and Busia face higher prices due to cross-border trade demands.

The government is countering pressures through the 2023 Petroleum Supply Amendment Act, bulk purchasing via Unoc at negotiated rates, and diversified sourcing. Nankabirwa urged an end to hoarding, speculative pricing, and illegal smuggling, noting arrests by district officials.

The event also marked the launch of the National Petroleum Policy 2025, replacing the 2008 version. It aims to boost exploration, ensure reliable supply, promote local content, and support sustainable growth. Permanent Secretary Irene Bateebe emphasized resource management and production longevity, while Deputy Speaker Thomas Tayebwa called it vital for tenfold economic expansion.

This article is based on a report from Daily Monitor (Uganda).