MPs Demand UNOC Fuel Price Transparency Amid Cost Surge

Lawmakers in Uganda’s Parliament have voiced strong concerns over the escalating cost of fuel, demanding clarity on the pricing structure employed by the Uganda National Oil Company (UNOC). The call for transparency comes as motorists grapple with higher prices at the pump, prompting questions about how UNOC supplies fuel to Oil Marketing Companies (OMCs).

During a plenary session, the Minister of Energy and Mineral Development, Dr. Monica Musenero, explained that the fuel price increase is a result of several converging factors. These include the weakening of the Ugandan Shilling against the US Dollar, a Shs200 excise duty hike introduced in the 2026/2027 financial year, and global supply chain pressures impacting international oil markets.

However, Deputy Speaker Thomas Tayebwa pressed Dr. Musenero for specific figures, emphasizing the need to understand the markup applied by UNOC before fuel reaches consumers. “We want to track how much they are adding,” Tayebwa stated, arguing that this information is crucial for legislators to assess the impact of UNOC’s role and pricing strategies.

Leader of the Opposition, Joel Ssenyonyi, pointed to the excise duty increase as a government-controlled factor that could be mitigated. He recalled the opposition to the tax hike during budget deliberations, warning of the potential negative consequences on fuel prices. Ssenyonyi also urged the government to consider potential supply disruptions linked to instability in neighboring Kenya.

Several MPs, including Isaac Otimgiw and Karim Masaba, advocated for temporary tax relief or the suspension of the Shs200 excise duty to alleviate the burden on consumers. They highlighted that such measures have been implemented in other countries facing similar challenges.

Minister Musenero acknowledged that she had not yet received the detailed pricing information from UNOC and pledged to provide it to the House. The debate was subsequently adjourned, pending a more comprehensive government statement on the broader economic situation, including the exchange rate’s impact on fuel costs.

This article is based on information from the Parliament of Uganda.