Uganda Awaits 119 Million Litre Fuel Vessel as Pump Prices Hit New Highs

A large vessel carrying 119 million litres of petrol, arranged by the Uganda National Oil Company (UNOC) and the Ministry of Energy and Mineral Development, is due to dock at Mombasa Port on Wednesday. This move aims to reinforce national fuel stocks and maintain supply stability across Uganda.

Motorists are facing steep price hikes, with petrol now averaging Shs5,400 per litre and diesel Shs5,350 at major stations as of Monday. These mark rises of Shs320 for petrol and Shs400 for diesel since mid-February, ending over a year of relative stability.

The surges stem from global issues, including risks in the Strait of Hormuz due to US-Israel tensions and regional frictions with Iran. Experts note higher shipping risks, insurance costs, freight delays, and a weakening shilling at Shs3,720-3,730 against the dollar are fueling the increases.

Dr. Patricia Litho from the energy ministry cautioned oil marketing companies (OMCs) against excessive price gouging. She stressed that while market factors exist, dealers should not burden consumers unduly. UNOC insists recent hikes by some firms exceed justified landed costs, with supply remaining secure.

Price checks reveal variations: Vivo and Total at Shs5,400/5,350 for petrol/diesel, while Stabex, Texol, and City Oil offer lower at around Shs5,250/5,100-5,150. Multinationals charge about Shs150 more than some locals on petrol.

Transport operators report squeezed profits, with passengers resisting fare hikes. Analysts predict ongoing volatility for East Africa if Strait tensions continue.

This article is based on a report from Daily Monitor.