UNOC earns over Shs500 billion from fuel imports

The Uganda National Oil Company (UNOC) has imported over 3.3 billion litres of fuel since July 2024, earning about $150 million (Shs 547.5 billion) in trading margins.

UNOC Chief Executive Proscovia Nabbanja said the company brings in around 240 million litres monthly, covering petrol, diesel, and jet fuel. This marks Uganda’s largest state-managed import programme, replacing private middlemen.

UNOC’s deal with Vitol, signed in August 2023, secures access to global supply networks, cheaper financing, and storage in Jinja and Tanzania. Vitol holds 30 million litres in Jinja and 50 million in Tanzania as reserves for emergencies.

The centralised system has stabilised the shilling at Shs3,600–3,650 per dollar, eased forex demand, and reduced fuel-related inflation. Fuel prices have dropped since July 2024, cutting transport and production costs for households, farmers, and traders.

To strengthen supply security, UNOC is developing a 320-million-litre storage terminal in Mpigi and a pipeline linking Kisumu to Jinja. Nabbanja said these reserves will be critical during the 2026 election season, when demand and forex pressures typically rise.