economy 25 May 2026 Daily Monitor (Uganda)
Uganda Faces Rising Household Costs as Fuel and Utility Prices Surge
Ugandan households are experiencing increased living expenses due to a significant rise in energy, fuel, and utility costs, which has counteracted the relief provided by lower food prices. Source: https://www.monitor.co.ug/uganda/news/national/fuel-utility-surge-drives-up-uganda-s-household-costs-despite-food-price-relief-5473206
Uganda is grappling with a notable increase in household expenditure, primarily driven by escalating fuel and utility prices. The annual inflation rate for Energy, Fuel, and Utilities (EFU) has jumped to 6.1 percent in April 2026, a considerable rise from 4.1 percent recorded in March, according to the Ministry of Finance, Planning and Economic Development. This upward trend has been consistent since the beginning of the year.
The surge is largely attributed to rising domestic pump prices for petrol and diesel, as well as an increase in the cost of charcoal, a vital cooking fuel for many urban dwellers. Current petrol prices hover around Shs 6,250 per litre, with diesel at Shs 6,105, reflecting a nearly Shs 2,000 increase in just two months. Ministry officials explain these hikes are a result of global geopolitical tensions impacting international markets, leading to higher importation costs, supply constraints, and currency fluctuations.
To mitigate these pressures and ensure fuel availability, the government, through the state-owned Uganda National Oil Company (UNOC) and its partnership with Vitol, has diversified fuel supply sources. UNOC is now sourcing from West Africa, Europe, India, and the Americas. Strategic fuel reserves are also being managed to prevent localized shortages.
Despite these efforts, the rising cost of energy is placing a strain on household budgets. However, consumers are finding some respite in the food sector. Annual food crop inflation has eased to 0.6 percent in April, down from 1.0 percent in March, thanks to favorable weather conditions and improved harvests. This situation presents a mixed economic picture, where increased spending on energy is partially offset by more affordable food staples.