Government says Uganda has sufficient fuel reserves despite Middle East instability affecting global oil markets, while new investments in storage, refining and supply infrastructure are expected to strengthen long-term energy security.
The Ministry of Energy and Mineral Development has reassured Ugandans that the country’s petroleum products supply remains stable despite ongoing disruptions in global oil markets linked to instability in the Middle East.
Speaking during a press briefing at the Uganda Media Centre on Friday, Permanent Secretary Eng. Irene Bateebe said disruptions associated with the Strait of Hormuz have significantly affected global oil supply chains, resulting in increased international fuel prices, freight charges and insurance costs.
Bateebe explained that East African countries, including Uganda, have felt the impact because of continued reliance on petroleum imports from the Arabian Gulf region. However, she said Uganda currently maintains adequate fuel stock levels to ensure uninterrupted supply nationwide.
“The Government continues to closely monitor developments in the international oil market and remains committed to ensuring stable petroleum product supply for the country,” Bateebe said.
She revealed that the Uganda National Oil Company, working with international partners including Vitol, has diversified fuel import sources to include West Africa, Europe, India and the Americas to cushion Uganda from supply shocks.
Bateebe acknowledged recent increases in pump prices, attributing them to global supply constraints, rising importation costs, exchange rate fluctuations and increased regional demand pressures.
She noted that temporary shortages recently experienced in some border areas were caused by increased cross-border demand due to Uganda’s relatively lower fuel prices compared to neighbouring countries, although supply stability has since been restored.
Bateebe reiterated that Uganda’s fuel market remains liberalised, with pump prices determined by Oil Marketing Companies, while government continues oversight to prevent smuggling, ensure fair pricing and protect consumers from exploitative practices.
“We urge the public to remain calm, avoid panic buying, and disregard misinformation circulating on social media because the country continues to receive regular fuel deliveries through both the Kenya and Tanzania supply routes,” she said.
On long-term energy security, Bateebe highlighted ongoing investments aimed at strengthening Uganda’s petroleum storage and distribution infrastructure.
She said the Jinja Storage Terminal is being expanded from 30 million litres to 40 million litres, while the 70-million-litre Mahathi Infra Terminal on Lake Victoria continues to improve regional fuel logistics and supply efficiency.
She also revealed progress on the Kampala Storage Terminal in Mpigi District, which will be integrated into the national refined products distribution network linked to the Hoima refinery pipeline system and is projected to have a storage capacity of 320 million litres.
Addressing downstream petroleum developments, Bateebe confirmed continued progress on the Uganda Refinery Project in Kabaale. The planned 60,000-barrels-per-day refinery, valued at approximately USD 4 billion, will include a refinery complex, a 211-kilometre multi-products pipeline and associated storage infrastructure.
According to the Ministry, the refinery project is expected to significantly reduce Uganda’s dependence on imported refined petroleum products while supporting industrial growth, petrochemical production, fertiliser manufacturing, LPG development, employment creation and regional trade.
The Ministry also announced progress in upstream petroleum activities, including preparations for the Third Petroleum Exploration Licensing Round scheduled for the 2026/2027 financial year. New seismic surveys in Kasurubani are also underway to identify additional petroleum prospects.
On the policy front, Bateebe disclosed that government has finalised the National Petroleum Policy 2025, replacing the 2008 framework to align the sector with emerging priorities in commercialisation, regional integration, sustainability and the global energy transition.
She further confirmed completion of the Petroleum Supply (Liquefied Petroleum Gas Operations) Regulations, 2026, which are expected to be gazetted soon to strengthen safety, regulation and quality assurance within the LPG supply chain.
Bateebe concluded by reaffirming government’s commitment to long-term energy security and maximising national benefits from Uganda’s petroleum resources through continued investment in refining, storage, infrastructure and exploration.
SOURCE: nilelost.co.ug