Govt attributes fuel prices to global costs, taxes, shilling depreciation

What the report says

Uganda’s Energy Ministry told Parliament that recent fuel pump-price increases are being driven by a mix of global and domestic factors, including international petroleum prices, taxation, exchange-rate movements, freight and insurance costs, and wider supply-chain expenses. The statement was delivered by Energy Minister Monica Musenero in Kampala on Wednesday, according to The Independent Uganda’s report based on URN coverage.

Musenero said the depreciation of the Uganda shilling has had a noticeable effect on retail prices, and she linked part of the pressure to the Shs200-per-litre excise duty increase on petrol and diesel for the 2026/2027 financial year. She also rejected calls for a single national pump price, saying Uganda’s petroleum market is liberalised and prices vary by company, location, logistics and other commercial factors.

The minister told lawmakers that fuel stocks remain sufficient, even as global markets face disruptions tied to Middle East production and transport challenges. She said government is working with the Uganda National Oil Company, neighboring countries and regional partners to improve supply resilience, expand storage capacity and reduce transport costs through new infrastructure and alternative routes.

Members of Parliament raised concerns about high prices in Kampala and upcountry areas, especially in Karamoja, and some called for temporary tax relief. The Deputy Speaker deferred further debate to a broader discussion on the economy, underscoring how fuel prices are being treated as part of wider currency and inflation pressures.