By Nasir Lubwama & Juma Nsamba
The Ministry of Energy and Mineral Development has assured the country that Uganda’s fuel supply remains stable despite ongoing disruptions in the global oil market.
Speaking during a press briefing at the Uganda Media Centre, the Permanent Secretary in the Ministry of Energy and Mineral Development, Eng. Irene Bateebe, said tensions in the Middle East, especially disruptions linked to the Strait of Hormuz, have affected global fuel supply chains, resulting in higher international fuel prices, freight charges, and insurance costs.
She said East African countries, including Uganda, have felt the impact because the region depends heavily on petroleum imports from the Arabian Gulf.
However, Eng. Bateebe said Uganda continues to maintain sufficient fuel stocks and steady supply lines.
She noted that the Uganda National Oil Company, together with international partners including Vitol, has diversified fuel imports to include supplies from West Africa, Europe, India, and the Americas to ensure uninterrupted availability of petroleum products.
The Permanent Secretary attributed the recent increase in pump prices to global supply constraints, rising importation costs, exchange rate fluctuations, and growing regional demand.
She also said Uganda’s relatively lower fuel prices had attracted increased cross-border demand, temporarily affecting supply in some border areas before the situation normalised.
Eng. Bateebe said Uganda’s fuel market remains liberalised, with prices determined by Oil Marketing Companies, while Government continues to monitor the sector to curb smuggling, prevent unfair pricing, and protect consumers.
She urged the public not to panic, avoid unnecessary fuel purchases, and ignore misinformation circulating on social media, adding that Uganda continues to receive regular fuel deliveries through both the Kenya and Tanzania routes.
On infrastructure, Eng. Bateebe said Government is expanding storage and distribution capacity to strengthen long-term energy security.
She said the Jinja Storage Terminal is being upgraded from 30 million litres to 40 million litres, while the Mahathi Infra Terminal on Lake Victoria, with a storage capacity of 70 million litres, continues to improve regional fuel supply and logistics.
She also revealed progress on the Kampala Storage Terminal in Mpigi District, which will be linked to the Hoima refinery pipeline network and is expected to have a storage capacity of 320 million litres.
On the refinery project, Eng. Bateebe confirmed that works are progressing on the Uganda Refinery in Kabaale, Hoima District.
The 60,000 barrels-per-day refinery, valued at about US$4 billion, will include a refinery complex, a 211-kilometre multi-products pipeline, and related storage infrastructure.
She said the refinery is expected to reduce Uganda’s dependence on imported fuel products while supporting industrial development, fertiliser production, LPG expansion, and job creation.
The Permanent Secretary also announced that Government is preparing for the Third Petroleum Exploration Licensing Round in the 2026/2027 financial year, alongside new seismic surveys in Kasurubani to identify additional petroleum prospects.
She further said Government has finalised the National Petroleum Policy 2025 to replace the 2008 framework and align the sector with current developments in commercialisation, regional integration, sustainability, and energy transition.
Eng. Bateebe also confirmed that the Petroleum Supply (Liquefied Petroleum Gas Operations) Regulations, 2026, have been completed and will soon be gazetted to strengthen safety and quality standards in the LPG sector.
She said Government remains committed to ensuring stable fuel supply, strengthening energy security, and increasing national benefits from Uganda’s petroleum resources through continued investment in infrastructure, refining, storage, and exploration.
