Unoc Begins Discharging 100 Million Litres of Fuel Amid Rising Prices

Uganda National Oil Company (Unoc) announced the start of discharging almost 100 million litres of fuel at Mombasa port on May 5. The consignment includes 47.5 million litres of petrol and 52.1 million litres of diesel, imported via a government-to-government deal.

Unoc’s Chief Corporate Affairs Officer, Tony Otoa, stated that the process is going smoothly, with the first trucks anticipated to enter Uganda via Malaba within hours, bolstering national stocks by week’s end.

Fuel prices have risen recently, with Shell outlets charging Shs5,720 per litre for petrol, up from Shs5,500 last week. Other stations like TotalEnergies priced it between Shs5,650 and Shs5,680, while diesel ranged from Shs5,200 to Shs5,300.

Energy Minister Ruth Nankabirwa emphasized that while global crude prices and dollar strength are beyond control, the focus remains on supply security. She noted monitoring to curb speculation.

Price hikes stem from the shilling’s depreciation to Shs3,750 per dollar and global oil surges tied to Middle East tensions, particularly around Iran and the Strait of Hormuz.

Since becoming the sole importer in January 2024, Unoc aims to cut intermediaries and stabilize supply. This shipment, covering about two weeks of Uganda’s 6.5 million litres daily demand, supports that goal through better procurement and reserves.

Transport operators have hiked fares by Shs5,000, passing on costs to consumers. Otoa added that controlling the supply chain helps manage external shocks despite global influences.

Source: Daily Monitor (Uganda)