KAMPALA — The government has secured an additional 119 million liters of petrol to bolster national reserves, a move officials say will stabilize the domestic energy market as neighboring countries struggle with supply shortages.
The Uganda National Oil Company (UNOC) is scheduled to receive a vessel at Mombasa Port in Kenya today. The delivery is part of a 2024 agreement signed with Vitol Bahrain E.C., a subsidiary of Vitol, the world’s largest independent oil trading firm.
The shipment is expected to dock at the Kipevu oil terminal. It marks a significant phase in the government’s April importation plan, which targets a total of 283 million liters of petrol, 180 million liters of diesel, and 25 million liters of Jet-A1.
Energy officials said the new petrol stocks will sustain national demand for an additional 30 days, while the diesel supplies are expected to last 51 days. Once the planned shipments are complete, Uganda’s fuel security is guaranteed through early June.
According to UNOC data, Uganda maintains a monthly fuel demand of approximately 240 million liters, with an annual consumption growth rate of 7 percent.
“We have enough supplies and this vessel is coming,” a government source told New Vision on condition of anonymity. “Despite global challenges in supplies, UNOC has made sure that Ugandans have enough. What we have in the reserves could already take us through April, and this new vessel will cover May.”
The fuel will undergo standard quality tests by Kenyan authorities before being offloaded into the Kenya Pipeline Company (KPC) infrastructure. At the request of UNOC, the product will be transported to Eldoret and Kisumu for pickup by Ugandan oil marketing companies.
In a statement released via X, formerly Twitter, UNOC reassured the public that the supply of petroleum products remains secure.
Dr. Patricia Litho, assistant commissioner for communication at the Ministry of Energy and Mineral Development, confirmed that the government is prioritizing energy security to prevent shortages.
“As government, our guarantee to the country is that fuel products will be available,” Litho said. She added that while global supply chains face hurdles, Vitol Bahrain has maintained consistent deliveries.
Litho also noted the ministry is monitoring oil marketing companies to ensure pump prices remain fair. “The fuel we are using now came in around February and March. With the new vessel docking, it will take us more time,” she said.
UNOC Chief Corporate Affairs Officer Tony Otoa said the government is actively managing supply chains to meet national demand.
However, officials noted that global market dynamics, specifically the conflict involving the United States, Israel, and Iran, have impacted pricing. While UNOC initially secured favorable rates through its sole importer status, global price hikes have forced adjustments.
“It is true that UNOC is selling at a different price because of the global changes,” the government source said. “However, oil marketing companies should not take advantage of this to charge exorbitantly.”
Last month, Energy Minister Ruth Nankabirwa warned dealers against overcharging consumers. At that time, she reported that diesel stocks could last 21 days and petrol 26 days.
The current supply framework follows 2023 amendments to the Petroleum Supply Act, which granted UNOC exclusive rights as the sole importer of petroleum products. The move was intended to eliminate middlemen previously accused of causing price fluctuations.
In May 2024, Uganda and Kenya signed agreements allowing UNOC to use KPC facilities. Last month, Uganda further solidified its position by acquiring a 20.15 percent stake in KPC, allowing the country to participate in determining transportation tariffs.
Governance and security consultant Simon Mulongo noted that while the current reserves are a positive step, the region must aim for two to three months of stock to build true resilience.
“In a fragmented world, resilience will not come from reacting after the price has already risen at the pump. It will come from preparation,” Mulongo said.
He noted that Uganda spends roughly $176 million monthly on refined petroleum. He warned that if regional conflict disrupts shipping routes, the country could face a significant strain on its foreign exchange reserves. Currently, more than 90 percent of Uganda’s imports arrive through the Port of Mombasa before traveling 1,200 kilometers by road to Kampala.
