Uganda fuel prices remain stubbornly high in 2025, despite government reforms that aimed to stabilize the petroleum sector and lower costs. Although the Petroleum Supply (Amendment) Bill, 2023 raised public hopes, Ugandans are still paying more than expected at the pump.
To tackle fuel price instability, the government gave the Uganda National Oil Company (UNOC) exclusive rights to import petroleum. This move targeted the elimination of middlemen, creation of stable fuel reserves, and reduction in consumer prices. When UNOC launched operations in April 2024, it initially delivered results. Prices dropped, reaching Shs4,860 per litre by December. As a result, many citizens believed that the reforms were working.
However, the relief didn’t last. By January 2025, Uganda fuel prices climbed past Shs5,000 per litre. UNOC claimed it had maintained the same pricing structure, but oil marketers argued that rising global costs caused the increase. This contradiction confused the public and stirred skepticism. Even though prices later stabilized at Shs4,999, they stayed above December levels and disappointed consumers.
In May 2025, fuel prices rose again. UNOC attributed the spike to logistical problems on the Kenyan supply route. This explanation raised concerns, especially because the new law had promised reserves sufficient for 30 days of consumption. These issues revealed planning gaps and questioned UNOC’s readiness to deliver on its mandate.
GlobalPetrolPrices.com reported that Uganda fuel prices had become the highest in East Africa. Uganda averaged Shs5,047.3 per litre ($1.388). In contrast, Burundi sold fuel at Shs4,883, Kenya at Shs4,876, Rwanda at Shs4,196, Tanzania at Shs3,985, and DR Congo at just Shs3,741. Uganda, therefore, fell behind its neighbors despite recent reforms.
Importantly, Uganda stands alone in the region for not subsidizing fuel or controlling prices. While neighboring governments manage fuel pricing to protect consumers, Uganda relies fully on market forces. This approach increasingly appears out of step with regional trends.
Several market conditions support lower prices. For example, crude oil fell slightly to $63.22 per barrel. Additionally, the foreign exchange rate remained stable at Shs3,636 per USD, and inflation only rose slightly to 3.8% in May 2025. Despite these favorable factors, Uganda fuel prices stayed high, prompting questions about inefficiencies or hidden costs.
Although UNOC now manages fuel imports, private oil marketing companies continue to oversee distribution and retail. Experts warn that, without strong oversight, these companies may still inflate their profit margins. Anthony Ogalo, from the Sustainable Energy and Petroleum Association of Uganda, openly challenged the situation:
“How can prices rise if procurement costs stay the same? The numbers don’t add up.”
Meanwhile, countries like Kenya, Tanzania, and Rwanda treat fuel as a strategic commodity. Their governments step in to prevent inflation and protect national economies. Uganda’s refusal to intervene leaves its citizens vulnerable to market shocks.
The government needs to take specific steps to fix the situation. First, it should increase price transparency. Publishing procurement and pricing data regularly would build trust. Second, it could introduce targeted fuel subsidies to shield consumers during supply disruptions. Third, it must regulate the distribution and retail segments to ensure fair margins and pricing.
Energy Minister Ruth Nankabirwa has acknowledged some progress from UNOC’s monopoly. However, she also called for further price cuts. Public frustration continues to grow. High fuel prices affect transportation, food prices, and inflation. Without meaningful reform, Uganda may remain the most expensive fuel market in East Africa.
In conclusion, Uganda fuel prices are still unreasonably high, even after over a year of UNOC’s exclusive importation role. The Petroleum Supply (Amendment) Bill had noble goals, but the results have fallen short. Unless the government ensures transparency, regulates pricing, and rethinks its hands-off approach, Ugandans will continue to pay more than their regional peers for essential fuel.
Read:Uganda Recommends Tanzania Route for Fuel Imports
