national 16 June 2026 Daily Monitor (Uganda)
Uganda's Fuel Prices Unlikely to Drop Soon Despite Global Peace Deal
Despite a recent peace agreement between the US and Iran potentially lowering global fuel prices, experts and the Ministry of Energy indicate that Uganda's pump prices will not see immediate adjustments. This is due to existing high-cost fuel stock purchased by the Uganda National Oil Company (UNOC). Source: https://www.monitor.co.ug/uganda/news/national/uganda-s-fuel-prices-may-not-be-adjusted-even-after-us-iran-peace-agreement-say-experts-5498384
Global shifts in fuel pricing, triggered by a newly signed peace deal between the US and Iran, are not expected to immediately translate into lower pump prices for Ugandan motorists. Dr. Patricia Litho, Director of Communication at the Ministry of Energy and Mineral Development, explained that Uganda National Oil Company (UNOC), through its supply partner Vitol, had already purchased fuel at the previous, higher market rates.
“UNOC, through Vitol, purchased it at high prices,” Dr. Litho stated, clarifying that the lag is due to the nature of fuel procurement. “Cargoes are bought months ahead, so current retail prices reflect stock secured when global rates were high.”
While Uganda has maintained relatively lower pump prices compared to neighboring Kenya and Rwanda for the past three months, this advantage might be temporary. Energy experts caution that the current stability could soon dissipate. Peter Ochieng’, a Regional Fuel Marketing Expert Downstream, concurs with the ministry, noting that while deregulation offers flexibility, it also creates a delay in reflecting global price changes.
“The market will catch up with the earlier stock. When that happens, the advantage we have seen over Kenya and Rwanda could narrow or disappear,” Ochieng’ commented. As of June 15, 2026, Kampala’s highest recorded prices were Shs6,499 for premium petrol and Shs6,599 for diesel. These prices, while higher than Tanzania’s, remain competitive against Kenya and Rwanda, partly due to Uganda’s deregulated market and the absence of direct pump subsidies, unlike its neighbors.
The trajectory of oil prices remains volatile, influenced by supply, demand, and global economic stability. The coming months will be crucial in determining Uganda’s fuel price outlook. Any sustained drop in crude oil prices and UNOC’s ability to secure cheaper future cargoes could maintain Uganda’s edge, but continued reliance on the costly Vitol stock might lead to price increases, even as other regional markets experience relief.
Source: Daily Monitor (Uganda)