Uganda Maintains Lower Fuel Prices Than Regional Neighbours Despite Global Oil Shock

Kampala April 15, 2026 - Uganda continues to record comparatively lower fuel prices than several East African countries, even as a global surge in crude oil prices and geopolitical tensions drive up pump costs across the region. International oil markets have remained under pressure in recent weeks, with crude prices exceeding $100 per barrel amid supply disruptions and heightened instability in the Middle East since late February 2026. The situation has been further aggravated by rising freight and insurance costs affecting global fuel shipments. Despite these challenges, Uganda remains slightly more affordable at the pump compared to its regional peers, including Kenya, Rwanda, and Burundi, though it remains dependent on fuel imports routed through the Kenyan corridor. Regional price comparison In Kenya, petrol averages about Shs5,871 per litre, with diesel at similar levels. In contrast, Uganda’s petrol prices stand at approximately Shs5,244 per litre, while diesel averages around Shs5,085, although prices in parts of Kampala have reportedly reached about Shs5,600. In Rwanda, petrol is priced at around Shs5,814 and diesel at Shs5,558, while Tanzania records averages of Shs5,415 for petrol and Shs5,387 for diesel. Ethiopia remains significantly lower, with petrol at roughly Shs3,363 and diesel at Shs3,848. Burundi reports average prices of about Shs4,959 for petrol and Shs4,874 for diesel. Structural reforms and supply chain changes Uganda’s relatively lower prices have been partly attributed to reforms in its fuel importation system. In 2024, authorities implemented the Petroleum Supply (Amendment) Act, 2023, which assigned the Uganda National Oil Company (UNOC) sole responsibility for fuel imports. The reform reduced reliance on intermediaries in Kenya, a system previously criticised for adding costs through middlemen margins. Uganda now directly sources fuel from international suppliers under long-term contracts, while still relying on regional infrastructure for transportation. Taxation differences across East Africa also continue to shape retail prices. Kenya applies relatively higher fuel taxes, including a 16% Value Added Tax alongside excise duties and other levies, contributing significantly to higher pump prices. Uganda’s tax regime remains comparatively lower, helping cushion consumers against global shocks. In Rwanda, fuel pricing is tightly regulated, with the government periodically setting maximum retail prices and occasionally subsidising costs to stabilise the market during global price spikes. Supply outlook and government assurances Ugandan authorities have sought to reassure the public over fuel availability, noting that additional shipments are expected to strengthen national reserves. The Uganda National Oil Company confirmed that about 119 million litres of fuel were expected to arrive through Mombasa on Wednesday to boost national stock levels. “This shipment will further strengthen national fuel reserves and ensure continued availability across the country,” UNOC said. The developments underscore how global market volatility, national procurement systems, taxation policies, and regional logistics continue to shape fuel price dynamics across East Africa.