Kampala-The Permanent Secretary at Uganda’s Ministry of Energy and Mineral Development, Irene Bateebe, has attributed the continued rise in fuel prices to global supply disruptions and high importation costs.
Fuel prices across Uganda have steadily increased following the escalation of conflict involving Iran, the United States, and Israel earlier this year, which disrupted global oil supply chains and international petroleum markets.
Currently, a litre of petrol is retailing between UGX 6,000 and UGX 8,000 in different parts of the country.
Speaking to journalists on Tuesday at the Uganda Media Centre, Eng. Bateebe reassured the public that Uganda’s petroleum supply remains stable and secure despite ongoing global market uncertainties.
She explained that East African countries, including Uganda, continue to feel the effects of volatility in international oil markets because of their dependence on petroleum imports from the Arabian Gulf region. However, she emphasised that Uganda still maintains adequate fuel reserves.
According to Eng. Bateebe, the Uganda National Oil Company, working alongside international partners such as Vitol, has diversified fuel import sources to include West Africa, Europe, India, and the Americas in order to guarantee uninterrupted supply.
She nevertheless acknowledged the recent increase in pump prices, noting that the hikes are being driven by global supply constraints, rising importation costs, exchange rate fluctuations, and growing regional demand pressures.
Eng. Bateebe further noted that increased cross-border demand for fuel from Uganda’s relatively lower pump prices compared to neighbouring countries — had temporarily strained supply in border districts, although the situation has since stabilised.
She urged Ugandans to remain calm, avoid panic buying, and ignore misinformation circulating on social media, stressing that the country continues to receive regular fuel deliveries through both the Kenyan and Tanzanian supply corridors.
On long-term energy security, Eng. Bateebe highlighted several government interventions aimed at strengthening petroleum infrastructure and storage capacity nationwide.
She revealed that the Jinja Storage Terminal is currently being expanded 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 logistics and supply efficiency.
She also disclosed progress on the Kampala Storage Terminal in Mpigi District, which will be integrated into the national refined petroleum distribution network connected to the Hoima refinery pipeline system. The facility is projected to hold up to 320 million litres.
On downstream petroleum investments, Eng. Bateebe confirmed continued progress on the Uganda Refinery Project in Kabaale, Hoima District — a 60,000-barrel-per-day refinery estimated to cost about US$4 billion.
The project includes a refinery complex, a 211-kilometre multi-products pipeline, and associated storage infrastructure. Once completed, it is expected to significantly reduce Uganda’s dependence on imported refined petroleum products.
She added that the refinery will support industrialisation through petrochemical production, fertiliser manufacturing, LPG development, employment creation, and enhanced regional trade competitiveness.
Eng. Bateebe further announced that government is advancing upstream petroleum exploration activities, including preparations for the Third Petroleum Exploration Licensing Round scheduled for the 2026/2027 financial year, as well as fresh seismic surveys in Kasurubani to identify additional oil and gas prospects.
On the policy front, she revealed that the government has finalised the National Petroleum Policy 2025, replacing the 2008 framework to align the sector with emerging priorities such as commercialisation, regional integration, sustainability, and the global energy transition.
She also confirmed the completion of the Petroleum Supply (Liquefied Petroleum Gas Operations) Regulations, 2026, which are expected to be gazetted soon to strengthen safety standards, regulation, and quality assurance within Uganda’s LPG supply chain.
Authorities say ongoing investments in petroleum infrastructure, storage facilities, refinery development, and exploration activities are intended to strengthen Uganda’s long-term energy security, reduce dependence on imported fuel, and support economic growth
