By Nathan Eyagu 

The Government of Uganda has reassured citizens and businesses that the country has sufficient fuel reserves to meet national demand despite continued volatility in global oil markets and rising international petroleum prices.

Speaking during a press briefing at the Uganda Media Centre, the Permanent Secretary in the Ministry of Energy and Mineral Development, Eng. Irene Bateebe, said Uganda’s petroleum supply chain remains stable even as geopolitical tensions in the Middle East continue to disrupt global fuel distribution networks.

She explained that instability linked to the Strait of Hormuz — a key global oil transit route — has increased international fuel prices, freight charges, and marine insurance costs, affecting petroleum-importing countries across East Africa.

“Uganda continues to maintain adequate fuel stock levels, and the country is receiving regular fuel deliveries through both the Kenyan and Tanzanian corridors,” Eng. Bateebe said.

The Permanent Secretary noted that the Uganda National Oil Company, in collaboration with global partners including Vitol, has diversified petroleum import sources beyond the Arabian Gulf to include suppliers from West Africa, Europe, India, and the Americas.

According to the Ministry, the diversification strategy has helped minimise supply disruptions and maintain steady fuel availability across the country despite global uncertainties.

Eng. Bateebe acknowledged that retail pump prices have risen in recent weeks but attributed the increases to international market conditions, exchange rate fluctuations, higher importation costs, and growing regional demand.

She added that increased cross-border demand from neighbouring countries seeking comparatively lower-priced fuel in Uganda had temporarily affected supply in some border districts, although the situation has since normalised.

The Ministry urged the public to remain calm and avoid panic buying, warning that misinformation circulating on social media could create unnecessary anxiety within the market.

Eng. Bateebe reiterated that Uganda’s fuel market remains liberalised, with pricing determined by Oil Marketing Companies under market conditions, while Government agencies continue to monitor the sector to prevent smuggling, hoarding, and exploitative pricing practices.

“We encourage the public to disregard false information and continue with normal fuel consumption patterns because supply remains stable,” she said.

As part of efforts to strengthen long-term energy security, Government is investing heavily in petroleum storage and distribution infrastructure.

The Ministry revealed that the Jinja Storage Terminal is currently being expanded from 30 million litres to 40 million litres to improve national fuel reserves and emergency response capacity.

In addition, the Mahathi Infra Terminal on Lake Victoria, with a capacity of 70 million litres, continues to improve regional fuel transportation and supply efficiency.

Government is also progressing with the Kampala Storage Terminal project in Mpigi District, which is expected to become a key component of Uganda’s refined petroleum distribution network connected to the Hoima refinery pipeline system. The planned terminal will have a storage capacity of 320 million litres.

Eng. Bateebe further confirmed ongoing progress on the Uganda Refinery Project in Hoima District.

The proposed 60,000 barrels-per-day refinery, estimated at approximately US$4 billion, is expected to significantly reduce Uganda’s reliance on imported refined petroleum products once completed.

The project includes a refinery complex, a 211-kilometre multi-products pipeline, and associated storage infrastructure.

According to Government, the refinery will support industrialisation through petrochemical production, fertiliser manufacturing, LPG development, job creation, and expansion of regional trade opportunities.

The Ministry also announced that preparations are underway for Uganda’s Third Petroleum Exploration Licensing Round scheduled for the 2026/2027 financial year.

Additional seismic surveys are expected to commence in Kasurubani as Government intensifies efforts to identify new petroleum prospects.

On the policy front, Eng. Bateebe disclosed that Government has finalised the National Petroleum Policy 2025, replacing the 2008 framework to better align the sector with modern energy trends, regional integration, sustainability priorities, and commercialisation objectives.

She also confirmed completion of the Petroleum Supply (Liquefied Petroleum Gas Operations) Regulations, 2026, which are expected to strengthen safety standards, regulation, and quality assurance across Uganda’s LPG supply chain.

Concluding the briefing, Eng. Bateebe reaffirmed Government’s commitment to ensuring stable fuel supply, long-term energy security, and sustainable utilisation of Uganda’s petroleum resources.

She said ongoing investments in refining, storage infrastructure, exploration, and fuel distribution systems are positioning Uganda to achieve greater energy resilience and economic stability in the years ahead.