Tayari News
The Ministry of Energy and Mineral Development has reassured the country that Uganda’s petroleum products supply remains stable and secure despite ongoing global disruptions affecting international oil markets.
Speaking at a press briefing held at the Uganda Media Centre, the Permanent Secretary of the Ministry of Energy and Mineral Development, Eng Irene Bateebe, reported that recent instability in the Middle East, particularly disruptions linked to the Strait of Hormuz has significantly affected global oil supply chains and increased international fuel prices, freight, and insurance costs.
She noted that East African countries, including Uganda, have been impacted due to their reliance on petroleum imports from the Arabian Gulf region. However, she emphasised that Uganda continues to maintain adequate fuel stock levels.
Eng. Bateebe stated that the Uganda National Oil Company, working closely with its international partners including Vitol, has successfully diversified supply sources to include West Africa, Europe, India, and the Americas, ensuring uninterrupted fuel availability in the country.
She acknowledged recent increases in retail pump prices, explaining that these are largely driven by global supply constraints, increased importation costs, exchange rate fluctuations, and regional demand pressures.
She further observed that cross-border fuel demand driven by Uganda’s comparatively lower prices temporarily strained fuel availability in border areas, but supply stability has since been restored.
According to the Permanent Secretary, Uganda’s fuel market remains liberalised, with prices determined by Oil Marketing Companies, while Government continues to monitor the sector to prevent smuggling, ensure fair pricing, and protect consumers from exploitative practices.
She urged the public to remain calm, avoid panic buying, and disregard misinformation on social media, noting that Uganda continues to receive regular fuel deliveries through both the Kenya and Tanzania supply routes.
On long-term energy security, Eng. Bateebe highlighted ongoing Government interventions to strengthen petroleum infrastructure and storage capacity.
She said the Jinja Storage Terminal is being upgraded from 30 million litres to 40 million litres, while the Mahathi Infra Terminal on Lake Victoria, with a capacity of 70 million litres, continues to enhance regional supply efficiency and logistics.
She also revealed progress on the Kampala Storage Terminal in Mpigi District, which will form part of the national refined products distribution system linked to the Hoima refinery pipeline network, with a projected capacity of 320 million litres.
Regarding downstream investments, she confirmed continued progress on the Uganda Refinery Project in Kabaale, Hoima District, a 60,000 barrels-per-day facility valued at approximately US$4 billion.
The project includes a refinery complex, a 211-kilometre multi-products pipeline, and associated storage infrastructure, and is expected to significantly reduce Uganda’s dependence on imported refined products.
Eng. Bateebe added that the refinery will support industrial growth, petrochemical production, fertiliser manufacturing, LPG development, and job creation, while strengthening Uganda’s energy independence and regional trade capacity.
She further announced that Government is advancing upstream petroleum exploration, including preparations for the Third Petroleum Exploration Licensing Round scheduled for the 2026/2027 financial year, alongside new seismic surveys in Kasurubani aimed at identifying additional petroleum prospects.
On policy developments, she reported that Government has finalised the National Petroleum Policy 2025, which replaces the 2008 framework and aligns the sector with emerging trends in commercialisation, regional integration, sustainability, and the global energy transition.
She also confirmed completion of the Petroleum Supply (Liquefied Petroleum Gas Operations) Regulations, 2026, which will soon be gazetted to strengthen safety, regulation, and quality assurance across the LPG supply chain.
Eng. Bateebe concluded by reaffirming Government’s commitment to ensuring long-term energy security, stable fuel supply, and maximisation of national benefits from Uganda’s petroleum resources, noting that strategic investments in infrastructure, refining, storage, and exploration are positioning the country for sustained energy resilience.
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