The Minister of Energy and Mineral Development, Ruth Nankabirwa, has cautioned oil marketing companies against raising pump prices without justification, insisting that Uganda’s fuel supply remains stable despite escalating tensions in the Middle East.
Speaking amid concerns that global instability could trigger higher pump prices, Nankabirwa said the Uganda National Oil Company (UNOC) has not increased its supply costs to local dealers.
“Well, fuel prices depend on different factors. But when UNOC comes out and says we are able to supply you at the same cost as before and you, the oil marketing company, are getting products from us. If we have not increased our price, why should you increase yours?” she said.
The minister emphasized that Uganda is still working with the same international supplier, Vitol, which has reportedly secured alternative product sources away from conflict-affected areas.
“If it is the same supplier and you are picking the products from the same point, whether Kisumu or Eldoret, we have not shifted. Why would you increase prices?” she asked.
Her remarks follow reports by the that global oil markets have been rattled by rising tensions involving Iran, pushing crude prices upward amid fears of supply disruptions in the Middle East.
There is fear that prolonged instability could eventually affect pump prices in fuel-import-dependent countries such as Uganda.
However, Nankabirwa maintained that current shipments for March are already secured and en route, meaning there is no immediate basis for a price adjustment.
“Uganda is currently stable as far as fuel supply is concerned. The vessels bringing in products for March are already on their way. So why should we see an increase this month?” she said.
The minister also referenced the supply agreement between UNOC and Vitol, noting that any cost adjustments must strictly follow contractual provisions.
“If Vitol comes back and says they tried alternative sources and managed to get products but at a higher cost, then we revert to the agreement we signed. Does that agreement provide for a price increase? That provision might not be there,” she explained.
She added that if no such clause exists, the supplier would have to absorb the additional costs. “Since they have been enjoying profits, now time has come for them to adjust and cushion themselves. I remember we safeguarded ourselves in the agreement signed between UNOC and Vitol.”
Uganda, which imports all its refined petroleum products through Kenyan transit routes, remains vulnerable to global oil shocks. But government officials insist existing supply contracts and diversified sourcing strategies are meant to shield consumers from sudden price spikes.