Uganda's Fuel Prices Remain Lowest in East Africa Despite Regional Hikes

Uganda’s fuel prices are holding steady as the cheapest in the East African region, even as neighboring countries implement significant price adjustments. Recent data indicates that Kampala offers lower pump prices for both petrol and diesel compared to Nairobi, Dar es Salaam, and Kigali.

In Kenya, petrol is now retailing at approximately Shs6,213 per litre and diesel at Shs7,044 per litre, even with subsidies in place. These figures are considerably higher than Uganda’s top prices of Shs5,799 for premium petrol and Shs5,720 for diesel. When converted to Kenyan shillings, Ugandan fuel is approximately KShS 200 per litre for petrol and KShS 197 for diesel, making it cheaper by a significant margin.

Similarly, fuel in Dar es Salaam and Kigali remains more expensive than in Uganda’s capital. While specific figures vary, the overall trend shows Uganda maintaining a competitive edge.

Analysts attribute Uganda’s consistently lower prices to its deregulated market. Unlike Kenya, Rwanda, and Tanzania, which employ regulated pricing models, Uganda’s fuel prices are directly influenced by market dynamics without a price cap. This flexibility, according to experts, allows Uganda to better manage and absorb price fluctuations.

Despite claims from some officials disputing the price comparisons, the available data consistently positions Uganda as having the most affordable fuel in the region for motorists. These lower prices are expected to continue until the next review cycle.

Source: Daily Monitor (Uganda)