The Ministry of Energy and Mineral Development has assured Ugandans that the country’s petroleum supply remains stable and secure despite escalating global disruptions in oil markets, even as it cautioned that consumers should expect a slight increase in fuel prices driven by international economic pressures.
Speaking at a press briefing at the Uganda Media Centre, the Permanent Secretary in the Ministry of Energy and Mineral Development, Irene Bateebe, said recent instability in global oil supply chains, particularly disruptions linked to the Middle East and the Strait of Hormuz, has continued to exert pressure on international fuel prices, freight costs, and insurance premiums.
She explained that although Uganda is not directly affected by production disruptions, its heavy reliance on imported petroleum products means global market shocks inevitably reflect at the pump. However, she emphasized that supply levels in the country remain sufficient and uninterrupted.
“Uganda’s petroleum products supply remains stable and secure despite ongoing global disruptions affecting international oil markets,” Bateebe said, noting that the Government continues to monitor developments closely to safeguard the local market.
She further revealed that the Uganda National Oil Company, in partnership with international suppliers including Vitol, has expanded Uganda’s sourcing network beyond traditional supply routes to include West Africa, Europe, India, and the Americas, a strategy aimed at ensuring consistent fuel availability.
According to the Ministry, recent increases in pump prices have been driven by a combination of global supply constraints, rising freight and insurance costs, exchange rate fluctuations, and heightened regional demand, rather than domestic shortages.
She also noted that temporary fuel pressure in border areas had been experienced due to cross-border demand triggered by Uganda’s relatively competitive prices, but said the situation has since normalised following corrective supply adjustments.
“Government continues to monitor the sector to prevent smuggling, ensure fair pricing and protect consumers from exploitation,” she said, urging the public to avoid panic buying and to disregard misinformation circulating on social media platforms.
Bateebe added that fuel deliveries into the country remain steady through both the Kenya and Tanzania supply corridors, reinforcing supply security despite global volatility.
On long-term energy resilience, she highlighted ongoing infrastructure expansion, including the upgrade of the Jinja Storage Terminal from 30 million litres to 40 million litres, alongside the Mahathi Infra Terminal on Lake Victoria with a 70 million-litre capacity, which continues to enhance regional fuel logistics.
She further disclosed that the Government is advancing the Kampala Storage Terminal in Mpigi District, which will be integrated into the national refined products distribution system linked to the Hoima refinery pipeline network, with a projected storage capacity of 320 million litres.
On upstream and downstream petroleum development, she confirmed continued progress on the Uganda Refinery Project in Kabaale, Hoima District, a $4 billion investment designed to process 60,000 barrels of crude oil per day.
The project also includes a 211-kilometre multi-products pipeline and supporting infrastructure expected to significantly reduce Uganda’s dependence on imported refined fuel while boosting industrial growth, petrochemical production, fertiliser manufacturing, LPG development, and job creation.
She added that the Government is preparing for the Third Petroleum Exploration Licensing Round scheduled for the 2026/2027 financial year, alongside new seismic surveys in Kasurubani aimed at identifying additional petroleum prospects.
On policy reforms, she said Government has finalised the National Petroleum Policy 2025, replacing the 2008 framework to align the sector with emerging priorities such as commercialisation, regional integration, sustainability and the global energy transition.
She also confirmed completion of the Petroleum Supply (Liquefied Petroleum Gas Operations) Regulations, 2026, which will be gazetted to strengthen safety standards, improve regulation and enhance quality assurance across the LPG value chain.
She reaffirmed the government’s commitment to ensuring energy security and maximising national benefits from Uganda’s petroleum resources through sustained investment in infrastructure, refining capacity, storage systems, and exploration activities.
