UNOC blames global disruptions, shilling depreciation for rising fuel prices

What the report says

The Uganda National Oil Company (UNOC) has told Parliament that recent fuel price increases are being driven by several external and domestic factors, including global supply disruptions, a weaker Ugandan shilling and a new duty of Shillings 200 introduced in the current financial year. The remarks were made by UNOC chief executive Proscovia Nabbanja during an appearance before the Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) in Kampala, where MPs pressed the company over persistently high petrol and diesel prices.

According to The Independent Uganda, lawmakers questioned why fuel remained expensive even though UNOC is the state’s sole importer of petroleum products and is meant to help safeguard supply. COSASE chair Muwada Nkunyingi said consumers were still facing very high prices, with petrol selling at more than 7,000 shillings per litre in some areas. He also asked whether UNOC was doing enough to cushion Ugandans from international price shocks.

Nabbanja said UNOC’s role extends beyond importing fuel and includes maintaining supply security, supporting competitive pricing and helping reduce pressure on the national treasury. She pointed to geopolitical tensions in the Middle East, shipping disruptions and attacks on refineries elsewhere as factors pushing up international benchmark prices. She also said some fuel cargoes are now traveling longer routes to East Africa, adding transport costs.

She told MPs that Uganda’s immediate supply remained secure, citing stocks on hand and in transit. Even so, the committee remained concerned that high pump prices were still affecting transport, business costs and household incomes. The report also noted that UNOC says it has limited control over the international pricing benchmark that feeds into final retail prices.