The Minister of Energy and Mineral Development Ruth Nankabirwa has warned the oil companies against increasing fuel during the ongoing Iran conflict.
On Saturday 28th February this year, Israel backed by United States of America launched attacks on Iran killing the Country Supreme leader Ali Khamenei and commanders of Islamic Revolutionary Guard Corps. As result Iran also launched retaliatory attacks on Israel and US military bases in Middle East.
Iran also closed Strait of Hormuz where about a fifth of the world’s oil is shipped through the all-important narrow passage of water.
As result, there are fears that countries including Uganda that have been buying fuel from Middle East may suffer disruption and record increment in prices.
But the Energy Minister Ruth Nankabirwa Ssentamu said there is no cause for alarm because Uganda National Oil Company Limited (UNOC) will ensure stable fuel supply despite the ongoing Iran Conflict.
Nankabirwa said that Vitol the supply partner of UNOC has also assured them, that they will ensure stable supply of oil products from alternative sources that are not in Middle East.
Nankabirwa added that scheduled cargoes for March 2026 remain on course, and expect pump prices to remain relatively stable.
She added that as per agreement, there are no clause that allows Vitol to increase prices which can disrupt the oil prices in Uganda.
“So I want to call upon all Oil Marketing companies not to take advantage in ongoing instability and increase pump fuel prices because UNOC has not done so. Uganda is currently stable in as far as fuel supplies are concerned. For March, the vessels that are carrying fuel are already on course. In case of anything, for us we shall revert to agreement we signed with Vitol and ask ourselves if there is a clause that allows it increase the prices. The provision might not be there” Nankabirwa
Nankabirwa said that since Vitol has been enjoying profits , time has come for them to adjust and cushion themselves in the ongoing Iran conflict.
“I will look at that agreement again but as far as I remember we cushioned ourselves on fuel prices” Nankabirwa said
Nankabirwa said that UNOC and supply partner Vitol are closely monitoring the situation and have put in place contingency measures to ensure uninterrupted deliveries.
Clarksons Research, which tracks shipping data, estimates that about 3,200 ships, or about 4 percent of global ship tonnage, are idle in the Gulf over Iran conflict, although that includes about 1,230 that likely operate only within the Gulf, The Associated Press news agency reported.
Iran’s Islamic Revolutionary Guard Corps (IRGC) has said it maintains full control of the Strait of Hormuz, where United States President Donald Trump has said he is prepared to deploy the navy to escort tankers.
