Uganda's Fuel Supply Stable Amid Middle East Tensions, But Prices Climb

Uganda’s fuel supply remains secure for the coming weeks, thanks to robust imports and existing stocks. An import schedule reveals shipments of about 157 million litres of petrol, 131 million litres of diesel, and 11.2 million litres of jet fuel arriving between April 2 and 28. Combined with reserves and pipeline inflows, this surpasses the average monthly consumption of 210 million litres.

Industry insiders confirm the system holds plenty of fuel already, creating a buffer against shocks from Middle East conflicts involving Israel, the US, and Iran. Total incoming volumes for April exceed 299 million litres, bolstering the outlook.

However, fuel prices at pumps are volatile. Petrol has risen from Shs5,080 to Shs5,250 at some Shell stations and Shs5,299 at TotalEnergies, with City Oil at Shs5,100. Diesel trends similarly higher after stability ended in January.

Energy Minister Ruth Nankabirwa deems these increases unjustified, as current stocks were bought before tensions escalated. The ministry labels them speculative and is monitoring oil marketing companies (OMCs). UNOC blames individual stations, not OMCs.

Analysts point to pressures like a weakening shilling and global crude price rises. Experts warn Uganda, as a net importer, faces risks if uncertainties persist, though government insists hikes are premature.

Source: Daily Monitor (Uganda)