Global diesel crisis adds to Uganda’s fuel price pressures

What the report says

Uganda’s fuel market is facing added pressure from a global diesel squeeze and domestic cost drivers, according to The Independent Uganda. The report says the International Energy Agency is urging governments to speed up emergency oil stock releases as disruptions linked to the Strait of Hormuz and lower Russian supplies tighten diesel availability worldwide.

In Uganda, Energy Minister Monica Musenero told Parliament that higher international prices, a weaker shilling and increased fuel taxes are pushing up pump prices. She said the country’s fuel stocks remain adequate to meet demand, but also noted that Uganda’s liberalised petroleum market means the government does not directly set retail prices charged by oil marketing companies.

The article says the shilling’s depreciation against the US dollar has increased the local cost of importing refined petroleum products, while the excise duty increase introduced in the 2026 tax law has added to the burden. Musenero said pump prices are shaped by several factors, including freight, financing, logistics and company margins, so lower global prices or a stronger currency would not necessarily bring immediate relief.

The report also highlights wider supply-security efforts, including UNOC-led procurement, discussions with Tanzania and Kenya, and plans to expand storage capacity. It suggests the issue matters not only for consumers at the pump, but also for transport costs and broader economic activity.