KAMPALA, May 5, 2025 – The Uganda National Oil Company [UNOC] has achieved unprecedented stability in the country’s fuel supply, following the implementation of its new importation strategy.
UNOC was granted exclusive rights to import petroleum products under the Petroleum Supply [Amendment] Act, 2023, a move that has significantly enhanced consistency in fuel availability across Uganda.
Speaking during a media engagement with editors at the Serena Hotel in Kampala, Aron Bukenya, a Trading Specialist at UNOC, revealed that the company has so far facilitated the delivery of over 1.9 billion litres of fuel to Uganda, ensuring sustained market stability.
“To date, 23 vessels have docked in Mombasa carrying fuel specifically for the Ugandan market,” Bukenya said. This follows a series of pivotal agreements and partnerships, including the issuance of a petroleum importation licence by Kenya’s Energy and Petroleum Regulatory Authority [EPRA] on March 28, 2024, and the signing of a Tripartite Agreement between the Governments of Kenya and Uganda and UNOC in May 2024.
UNOC’s first shipment under the new framework arrived on 4 July 2024 via two vessels — the MT Navig8 Martinez and the MT Sinbad, delivering a total of 58,000 metric tonnes of petrol and 79,000 metric tonnes of diesel.
By cutting out layers of intermediaries and engaging directly with Ugandan Oil Marketing Companies (OMCs), UNOC has reduced costs and eliminated dependence on Kenyan trading agents. This has been made possible through a strategic partnership with global energy trading giant VITOL.
Sarah Birungi Banage, UNOC’s Head of Corporate Affairs, highlighted the broader impact of the company’s direct importation model. “Over the past six months, we have experienced a consistent and reliable supply of petroleum products, with more than one billion litres imported,” she said. “This strategy has minimised the risk of shortages and price volatility, ensuring a steady fuel supply and stable pump prices.”
UNOC’s market data indicates that in October 2024, average prices stood at Shs 4,932 for petrol and Shs 4,434 for diesel. By early 2025, these had eased to Shs 4,608 and Shs 4,857 respectively, reflecting improved market efficiency and supply certainty.
Banage also noted that eliminating middlemen has boosted Uganda’s energy security while strengthening the domestic banking sector. “All Oil Marketing Companies now pay for petroleum products through Ugandan banks rather than Kenyan institutions, injecting more foreign currency into our economy,” she said.
Uganda currently hosts more than 102 licensed oil marketing companies operating across the country. With market stability achieved, the sector is creating new opportunities for local transporters, clearing and forwarding agents, and fuel service providers, driving employment and skills development.
“As we move closer to refining our own crude oil, the country’s reliance on imported fuel will decline,” Banage added. “Uganda is poised to become a vibrant export hub for petroleum products in the region.”
The upcoming refinery project is expected to generate over 635 direct jobs during construction and operations, and more than 5,700 indirect jobs, further stimulating economic growth.
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