Unoc fuel prices Uganda have continued to drop steadily, thanks to strategic reforms in the country’s petroleum supply system. Since July 2023, the Uganda National Oil Company (Unoc) has served as the exclusive fuel importer. This shift eliminated Kenyan middlemen and gave Uganda greater control over its fuel supply.
Unoc’s pricing model relies heavily on Platts, a global benchmark for oil prices. Notably, Platts contributes between 80% and 87% of the final wholesale price. As a result, Unoc has improved price transparency and reduced volatility in the local market.
Between July 2023 and early 2024, Unoc purchased fuel at Shs3,800 to Shs4,000 per litre. It then sold to oil marketing companies (OMCs) at no more than Shs4,600, inclusive of taxes. This tight margin has played a key role in stabilizing fuel prices across the country.
According to Tony Otoa, Unoc’s Chief Corporate Affairs Officer, global benchmarks are falling, and Uganda is now importing more efficiently. Consequently, the country expects even lower prices once the Tanzania import route is fully operational.
Earlier, in March 2023, President Museveni directed Unoc to take over national fuel importation. This reform ended the Open Tender System, which had relied on private Kenyan traders. The goal was to reduce inflated pricing and strengthen Uganda’s bargaining power.
Following this directive, Uganda passed the Petroleum Supply (Amendment) Act in October 2023. This legislation officially empowered Unoc to operate as the sole importer. Shortly after, Unoc signed a supply agreement with Vitol Group, the world’s largest independent oil trader.
Under the new arrangement, Vitol delivers $250 million worth of fuel every month to Mombasa, handing it to Unoc on credit. Unoc then transports the fuel through the Kenya pipeline to Eldoret and trucks it into Uganda. With this model, Unoc controls both import and distribution, ensuring efficiency.
Since launching the new system, Unoc has imported more than 1.9 billion litres using 23 vessels, according to Aron Bukenya, a Trading Specialist at the company. Between July and December 2024, petrol prices fell by 6.6%, from Shs5,300 to Shs4,950 per litre.
Importantly, this marks the first time Uganda’s pump prices are either on par with or lower than Kenya’s. To further reduce risks, Unoc developed alternative supply routes through both Kenya and Tanzania. This redundancy shields the country from unexpected disruptions.
In December 2024, Energy Minister Ruth Nankabirwa announced an ambitious target: reduce pump prices to Shs3,800, about one US dollar. She stated that oil marketing companies could remain profitable even if prices drop further.
Additionally, the Unoc–Vitol deal features a fixed-price, credit-based model, offering Uganda insulation from global price shocks. The predictable monthly deliveries also help local businesses plan and budget more effectively.
Going forward, Unoc plans to scale its infrastructure and enhance supply networks. With these improvements, Unoc fuel prices Uganda are expected to continue falling—delivering sustained benefits for consumers, transporters, and the broader economy.
