Fuel shortage artificial, price hikes unwarranted – Nankabirwa

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The current fuel scarcity and price increases are unwarranted, the minister of Energy and Mineral Development, Ruth Nankabirwa, has said. Nankabirwa attributed the shortage to artificial disruptions, insisting that Uganda has sufficient fuel supplies to meet domestic demand. She noted that the Uganda National Oil Company (UNOC) secured current reserves as early as January at then-prevailing international prices and continues to supply fuel to marketing companies at those rates. She said the ministry is considering sanctions against companies accused of distorting supply and pricing trends. The minister was speaking to journalists at the 12th National Oil and Gas Convention at Speke Resort Munyonyo. Nankabirwa said preliminary investigations show that the shortage is more pronounced in upcountry areas than in Kampala and surrounding regions. “Uganda currently holds adequate fuel stocks within operational thresholds, complemented by a strong forward import pipeline,” she said, adding that by mid-April 2026, about 119 million litres of petrol had been received through the port of Mombasa. She said planned imports between mid-April and mid-June include approximately 163 million litres of petrol, more than 200 million litres of diesel and about 22.4 million litres of Jet A-1 fuel. Combined with existing reserves, she said, the country has a cover of up to 67 days for petrol, 84 days for diesel and 89 days for jet fuel, against a national daily consumption of about 8 million litres. “I am pleased to report that recently discharged cargoes have begun flowing into the country, and distribution across retail outlets is ongoing. This will continue to stabilise supply nationwide in the coming days,” she added. The minister also raised concern over illegal cross-border fuel trade, saying some dealers are diverting fuel meant for the local market to the Democratic Republic of Congo (DRC) through border points such as Arua and Kasese. She said some traders are also transporting fuel in jerrycans on boda bodas, warning that such practices are illegal and will attract penalties. Nankabirwa urged the public to avoid panic buying and hoarding fuel in homes, maintaining that there is no national fuel crisis. While current reserves are expected to sustain the country in the short term, she cautioned that prices could rise in the coming months due to global factors. “This is because global crude oil prices have increased, and the oil UNOC is purchasing now reflects those higher costs,” she said, adding that refining costs have also risen significantly. She warned that pump prices are likely to increase from May as new shipments are priced at current international market rates, but said government will continue engaging marketers to ensure prices remain within reasonable limits.The post Fuel shortage artificial, price hikes unwarranted – Nankabirwa appeared first on The Observer.