Ugandan President Yoweri Museveni has credited President William Ruto with helping Uganda secure a new petroleum supply arrangement that has significantly reduced the cost of importing fuel. In his birthday reflections marking his 82nd birthday, Museveni said the new arrangement has resulted in lower petroleum import costs. He expressed gratitude to Ruto for prevailing over actors in Kenya who were trying to resist the change.
Museveni said Uganda had previously been buying petroleum products through middlemen in Kenya before changing its procurement model. He revealed that a Kenyan senator alerted him to the arrangement around 2019, prompting him to task the then Energy Minister Irene Muloni with addressing the issue. The matter was not resolved until 2023, when Uganda linked up with a global energy trader.
The new arrangement, involving Uganda National Oil Company (UNOC) and a global energy trader, has resulted in lower petroleum import costs. Under the agreement signed on August 18, 2023, Museveni said Uganda's petroleum costs were reduced, with the price for diesel falling from $118 to $83 per metric tonne. The price of petrol dropped from $97.50 to $61.50 per metric tonne, while aviation fuel declined from $114.25 to $79.25.
The arrangement allows Uganda to transport its petroleum products through the Kenya oil pipeline, with the Kenya Government allowing Uganda to have shares of 20.15 per cent in the Kenya Pipeline Company. Museveni said he was happy with the Kenyan Government of President Ruto on this matter. The changes followed a dispute over Uganda's long-standing reliance on Kenyan oil marketing companies and intermediaries to procure petroleum products.
In 2024, Kenya and Uganda signed an agreement allowing UNOC to import refined petroleum products directly from producer countries and use Kenya's infrastructure for their transit. Uganda has since continued working with the global energy trader to secure petroleum supplies, including sourcing products from alternative markets during disruptions to global supply chains.
Uganda's government said in May 2026 that UNOC and the global energy trader were securing supplies from West Africa, Europe, India and the Americas amid disruptions linked to the Middle East. The investment in the Kenya Pipeline Company was described by Ugandan officials as part of efforts to strengthen energy security and cooperation between the two countries.
Museveni made the remarks in a birthday message in which he called for greater African economic and political integration. He said integrating the continent's common market and strengthening political cooperation would help secure Africa's prosperity and strategic security.
Key points
- President Museveni credits President Ruto for helping Uganda secure a new petroleum supply arrangement.
- The new arrangement has reduced Uganda's petroleum import costs, with diesel prices falling from $118 to $83 per metric tonne.
- Uganda and Kenya have strengthened energy security and cooperation, with Uganda holding a 20.15 per cent stake in the Kenya Pipeline Company.
