KAMPALA — Uganda’s fuel importation strategy has made significant strides since the Uganda National Oil Company (UNOC) was granted sole responsibility for petroleum product imports under the Petroleum Supply (Amendment) Act, 2023.
Speaking during a media engagement with editors at the Serena Hotel in Kampala on March 12, Aron Bukenya, a Trading Specialist at UNOC, said the company has so far facilitated the delivery of over 1.9 billion litres of fuel products to Uganda.
“To date, 23 vessels have landed in Mombasa destined for the Ugandan market,” Bukenya said.
He explained that this milestone follows a series of key agreements and partnerships, including the issuance of a petroleum product importation license by Kenya’s Energy and Petroleum Regulatory Authority (EPRA) on March 28, 2024, and the signing of a Tripartite Agreement between the Governments of Kenya and Uganda and UNOC on May 10, 2024.
Bukenya highlighted that the first shipment under this new framework arrived on July 4, 2024, with two ships — the MT Navig8 Martinez and the MT Sinbad — delivering a combined cargo of 58,000 metric tonnes of petrol and 79,000 metric tonnes of diesel.
He noted that by cutting out middlemen and dealing directly with Ugandan Oil Marketing Companies (OMCs), UNOC replaced the previous reliance on foreign traders, with global trading giant VITOL now supporting Uganda’s supply chain.
Regular engagements with OMCs, Bukenya added, are ongoing to ensure maximum value delivery.
Sarah Birungi Banage, UNOC’s Head of Corporate Affairs, emphasized the broader impact of UNOC’s new role on Uganda’s fuel market and economy.
“In the past six months, we have witnessed a consistent and reliable supply of petroleum products with over one billion litres imported,” Banage said. “UNOC’s direct importation role has minimized risks of shortages and price volatility, ensuring a steady flow of fuel into the country.”
Banage explained that the stable supply has translated into steady pump prices, allowing consumers and businesses to better plan their expenses.
According to UNOC’s market analysis, fuel prices averaged UGX 4,434 for diesel and UGX 4,932 for petrol in October 2024, gradually easing to UGX 4,857 and UGX 4,608 respectively by January 2025.
“This is unlike the high and unstable fuel prices that marked the start of 2024,” Banage noted.
UNOC’s efforts have also stimulated growth across the fuel sector, with 102 OMCs now actively doing business with the company.
Additionally, the bulk trading operations have created new opportunities for local transporters, clearing and forwarding agents, and fuel dipping service providers, helping to boost employment and local expertise in the petroleum sector.
Looking ahead, Banage said Uganda’s energy landscape is poised for even greater transformation with the development of the country’s own oil refinery.
“As we progress towards refining our own oil, reliance on imports will decline, and Uganda is expected to become a vibrant export hub for petroleum products in the region,” she said.
The refinery project is anticipated to create more than 635 direct jobs during construction and operations, and over 5,700 indirect jobs, stimulating broader economic growth.
“UNOC’s experience in managing petroleum imports today will be invaluable when Uganda’s refinery becomes operational,” Banage added.
With stable supply chains, strengthened financial systems, and growing local capacity, Uganda’s move to entrust UNOC with sole fuel importation is already delivering tangible benefits — and setting the stage for a future of energy independence and economic resilience.
Do you have a story in your community or an opinion to share with us: Email us at Submit an Article
