KAMPALA — Uganda’s ambitious attempt to lower fuel prices in Kampala through a direct
purchase agreement with Vitol Bahrain has failed to deliver the expected relief, according
to a report by the East Africa Standard newspaper.
This week, diesel prices in Kampala increased to $1.38 per liter from $1.37, while petrol
prices rose to $1.47 from $1.46.
These price hikes mean Kampala has now surpassed Nairobi as the city with the highest
fuel prices in East Africa. In Nairobi, diesel is currently priced at $1.32 per liter and petrol at
$1.45.
Last year, President Yoweri Museveni announced that the agreement with Vitol Bahrain
would help reduce pump prices in Kampala by eliminating “middlemen in Kenya.”
Museveni blamed these intermediaries in Kenya’s government-to-government deal with
three Gulf oil majors for inflating fuel prices in Uganda.
The Uganda National Oil Company (Unoc) signed a five-year import deal with Vitol Bahrain.
The first shipments of petrol and diesel under this agreement arrived early this month and
are now being sold in the Ugandan market.
Despite the initial hopes pinned on this direct purchase deal, the recent price increases
suggest that the intended benefits have yet to materialize, raising questions about the
future efficacy of Uganda’s strategy to manage fuel costs.
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