ENERGY MINISTRY ASSURES NATION OF STABLE FUEL SUPPLY

By Fortunate Akankunda

The Ministry of Energy and Mineral Development advises the public to expect minor adjustments to domestic fuel prices. Addressing journalists at the Uganda Media Centre this afternoon, the Permanent Secretary, Eng. Irene Pauline Bateebe, confirmed that while market forces are driving a modest rise, retail petrol prices will remain strictly capped below UGX 7,000 per liter.

"These adjustments are largely driven by global supply constraints, higher import costs, regional demand pressures, and exchange-rate fluctuations," she explained.

The Permanent Secretary attributed the market shifts to escalating geopolitical tensions in the Middle East, which have driven up global crude oil prices. She explained that current domestic fuel shipments reflect prices negotiated during recent global oil price spikes.

But what about the fuel shortages that have been reported, especially near the borders? The Permanent Secretary acknowledged they had occurred and explained that Uganda’s neighbors were taking advantage of the country's lower prices. She added that because Uganda had kept its prices lower than those of surrounding countries, trucks from Kenya, DRC, and South Sudan were crossing in to buy fuel in bulk.

"In Uganda, we were able to keep our prices within an allowable limit, and they were much lower than our neighbors’. So naturally, that forced our neighbors to come to us for supplies," Eng. Bateebe said. "We had tankers, even sometimes bozers. We saw construction bozers in Busia coming in and fueling. So we had to stop those bulk purchases that were not justified."

The Permanent Secretary assured the country that there have been no major supply gaps in recent weeks and urged Ugandans to remain calm. "We therefore call upon the public to remain calm, avoid panic buying, and disregard misleading information circulating on social media regarding fuel shortages," she said.

On why diesel has become more expensive than petrol, she explained that it’s a global dynamic. "As we entered the conflict, many refineries reorganized their operations and margins. They look at which product will fetch the best price on the market. So, what we are seeing is not an issue in Uganda. It is a global refining phenomenon."

Regarding whether Uganda will run out of fuel entirely as the conflict drags on, the Permanent Secretary was confident that it would not. She revealed that the country has already secured supplies for May and June and has placed orders for July.

"As we speak today, we already have our product through May and June. We've already ordered for July, and all those months are largely assured," she said. "We will continue to monitor the conflicts, but critically, we are focused on the capacity of our global partner working with UNOC to diversify product sourcing."

In the long term, the government is counting on the planned oil refinery in Hoima. Once the 60,000-barrel-per-day facility is operational, Uganda will no longer rely on fuel imports from the Middle East. "The refinery will substantially strengthen Uganda's strategic fuel reserves, stabilize long-term supply, support regional exports, and reduce the country's exposure to global supply shocks and international price volatility," the Permanent Secretary said.