Kampala, Uganda – The Uganda National Oil Company (UNOC) has successfully imported and delivered 1.9 billion litres of fuel to Ugandan oil marketing companies since July 2024.
“As at March 2025, the total volume of 1.9 bn litres of fuel have been delivered to Uganda,” said Aron Bukenya, the trading specialist at UNOC during an engagement with Uganda’s Editor’s Guild in Kampala this week.
The cumulative 1.9 billion litres delivered over the year consists of: Premium Motor Spirit (Petrol) amounting to 991.97 million litres (12 vessels); Automotive Gasoil (Diesel) amounting to 805.33 million litres (8 vessels) and Jet A-1 Fuel amounting to 104.24 million litres (7 vessels, including 3 combination shipments).
Officials said this was a milestone in Uganda’s quest for fuel security, price stability, and direct sourcing from global markets.
The development follows UNOC’s designation as Uganda’s sole fuel importer in November 2023 under the Petroleum Supply (Amendment) Act, 2023, which allowed it to bypass Kenyan middlemen and deal directly with refiners and global traders.
MT Navig 8 Martinez and MT Sinbad delivered the first shipment of 58,000 Metric Tonnes of petrol (PMS) and 79,000 Metric Tonnes of diesel (AGO) in early July 2024.
Bukenya said since the first shipment in July 2024, “a total of 23 vessels have docked in Mombasa, carrying fuel destined for Uganda.”
Bukenya said, “before UNOC took over, you could not go anywhere in the world, on the high seas, and point to a little fuel that was dedicated to Uganda. The fuel that we’re getting was being imported by and through companies in other countries, most importantly, Tanzania and Kenya, and they could decide to sell it to Uganda or sell it to companies in their countries or other countries.”
He added: “It’s only when UNOC took over that right now, I can go online and tell you and show you a vessel, and show you that vessel is carrying fuel dedicated to Uganda. If anyone touches it, they will be touching fuel that is marked for Uganda. So that’s one of the things that we wanted to achieve through security of supply and revenue generation.”
Refineries
UNOC’s fuel imports have been sourced from major global refiners, including Saudi Aramco, ADNOC (Abu Dhabi National Oil Company), and others with the view of ensuring a steady and diversified fuel supply.
Uganda imports about 2.5bn litres of fuel annually at a cost of about $2bn.
“Uganda used to import 95% of its fuel through Kenya through what is called the Open Tender System. Kenyan importers used to parcel this fuel and sell it to Ugandan companies. No Ugandan company would get enough through just a direct line from the traders,” said Bukenya.
He said trading giant Vitol has played a critical role in replacing intermediary traders and streamlining Uganda’s petroleum imports.
“UNOC is now dealing with one supplier – Vitol – on a long term contract. Why we chose Vitol is that it is the biggest oil and energy trader in the world. There’s no doubt about that. The numbers don’t lie. UNOC then plays the part of trader two, eliminating middle men, while maintaining steady supply to Ugandan oil marketing companies,” said Bukenya.
“So, as long as you are a Ugandan company with the ability to import fuel with the license by the Ministry of Energy to import fuel, you can buy your fuel directly from UNOC. You give your fuel requirement to UNOC. UNOC sources that fuel and then supplies it to you directly for logistical reasons. We are still supplying Ugandan oil marketing companies through Kenya using the Kenya pipeline company facilities, and we’re also making some supplies from the Jinja storage terminal.”
Pump Prices
UNOC’s importation strategy intends to ensure fuel pricing in Uganda remains closely aligned with Platts market rates, which represent global product costs at the supply source.
Platts pricing accounts for 80-87% of UNOC’s product cost to Oil Marketing Companies (OMCs), helping stabilize pump prices.
Uganda National Bureau of Statics recently reported a gradual decrease in pump prices.
Petrol and diesel pump prices are slightly below Shs 5,000.
Bukenya said from July 2024 to February 2025, UNOC’s supply strategy has led to predictable pricing trends, with pump prices in Uganda reflecting fluctuations in Platts benchmarks.
He said the supply stability and competitive sourcing strategy have contributed to mitigating excessive price volatility in the local market.
While the exclusive bulk trading and direct procurement from refiners has seen Uganda achieve significantly reduced costs associated with intermediary traders, improved price competitiveness and ensured consistent fuel availability, there is a need to expedite the construction of the oil refinery.
