Government warns Ugandan fuel companies over ‘superficial’ pump price hikes

Uganda’s government has cautioned oil marketing companies against unjustified increases in fuel pump prices, even as global markets react to rising tensions in the Middle East. 

The warning comes after motorists reported considerable hikes at several stations this week.

As of Friday, petrol prices exceeded Shs 5,200 per litre while diesel rose above Shs 5,300 at outlets such as TotalEnergies.

Permanent Secretary in the Ministry of Energy and Mineral Development, Eng Irene Batebe, moved to calm public concern, insisting that Uganda’s fuel supply remains stable despite global uncertainty.

“It is important to once again reassure the nation that we remain well served with petroleum products,” she said.

“We continue to hold stocks that will take us for the next couple of months”

She explained that Uganda’s shipments for March and April had already passed through the Strait of Hormuz before recent tensions escalated, ensuring continuity of supply. 

Uganda, according to Batebe, is also relying on the partnership between Vitol Bahrain and the Uganda National Oil Company (UNOC) to secure alternative supply routes if necessary.

Eng Batebe described the current pump price increases as unwarranted, since the government has not adjusted wholesale prices.

“Therefore if there is any appreciation in prices in the market at fuel stations, this is superficial,” she said. 

“The Minister of Energy (Ruth Nankabirwa) issued clear warnings to the oil marketing companies, indicating that following UNOCs participation in the sole bulk importation business where it is the government through UNOC that is importing products up to Eldoret and we are the ones supplying the oil companies, we have not changed any product pricing up to Eldoret for the supplies coming to the market,” she added.

The government now expects oil marketing firms to reflect these stable supply costs at retail level, warning against speculative pricing that burdens consumers.

The price fluctuations come amid escalating conflict involving Iran and its allies, which has heightened fears of disruptions to the Strait of Hormuz, one of the world’s most critical oil transit routes. The narrow waterway handles roughly a fifth of global oil shipments, making it highly sensitive to geopolitical tensions.

Recent developments have seen Iran threaten restrictions on maritime movement in the strait, sending global oil prices upward. Brent crude prices have risen sharply in recent days as markets react to the uncertainty.

Several countries have already begun to experience the ripple effects of the crisis. In parts of Europe, fuel prices have climbed as import costs increase, while Asian economies such as India and Japan, which rely heavily on Middle Eastern oil, are facing renewed pressure on energy costs.

In neighbouring Kenya, pump prices have also shown signs of upward movement, reflecting regional vulnerability to global supply shocks. Analysts warn that prolonged disruption in the Strait of Hormuz could lead to sustained increases in fuel prices worldwide.

Uganda maintains that its immediate fuel supply remains secure. However, Eng Batebe noted that the government continues to monitor the situation closely.

“Of course we continue to monitor the Iran conflict and study what the implications could be after April. As these matters evolve, we will keep the nation updated,” she said.