As Uganda moves closer to becoming an oil-producing nation, many citizens are questioning why fuel prices remain high despite major investments in the country’s petroleum sector and the prospect of first oil later this year.
Footage filmed in Kampala on Thursday shows motorists driving through streets and residents going about their daily routines as rising fuel costs continue to push up transportation expenses, food prices and the overall cost of living.
For many Ugandans, expectations that domestic oil production would eventually lower fuel prices have yet to materialise.
“The fuel has affected me in that most items I need to buy for home, for office, and even my travels,” said Kampala resident Hillary Rwigyema. “I used to use fuel for around 50,000 [UGX] (13.2 USD, 11.4 EUR) per week. Now I have to put out like 80,000 (21.2 USD, 18.2 EUR) per week. An extra movement also impacts my financial abilities.”
Business owners say the impact extends beyond households, with higher transport costs driving up prices across supply chains.
“The increase and rising fuel prices have really affected us so, so, so, so much,” shared businessman Musakiliza Mark, explaining that they used to spend around 3.5 million UGX (928 USD, 798 EUR) transporting goods from Nairobi, but now it costs about 4.5 million (1,194 USD, 1,026 EUR).
He added, “That is really a big margin in that when you bring the goods and put them into the market, that cost, that is being put in or that increase, it affects the buyers. […] So to stay in business, you also have to do a certain increase in the price that you used to sell.”
Government officials argue that Uganda’s fuel prices remain competitive compared with neighbouring countries and say recent increases have been driven by global factors rather than domestic policy.
“If you compared fuel at our pump prices to Kenya, Tanzania, South Africa, we had a very, very favourable price because the government buys the fuel itself, […] so we are able to monitor and manage pricing of fuel,” said Litho Patricia, Commissioner for Communication and Information Management at the Ministry of Energy and Mineral Development.
Patricia explained global conflicts, shifting supply routes, higher freight charges, insurance costs and currency fluctuations had all contributed to increased import costs.
“We are purchasing at a higher price,” she declared. “We are not going to sell at a loss, and we’re not giving subsidies because we have reduced our borrowing. We must generate our own income.”
Uganda is preparing to enter the final phase of its long-awaited oil industry, with authorities targeting mid-to-late 2026 for the country’s historic first oil production.
The Tilenga project, operated by TotalEnergies, and the Kingfisher project, operated by CNOOC, are expected to produce a combined peak output of 230,000 barrels per day.
However, analysts note that domestic fuel prices are unlikely to fall immediately. Uganda still lacks a functioning refinery and must continue importing refined petroleum products even after crude production begins.
Until the planned refinery in Hoima and the East African Crude Oil Pipeline (EACOP) are completed, Uganda will continue to export crude oil while relying on imported fuel, leaving local consumers exposed to fluctuations in global energy markets.
Source: Viory
