The Ugandan parliament has requested a detailed breakdown of the price at which the Uganda National Oil Company (UNOC) supplies fuel to oil marketing companies. This move comes as Members of Parliament (MPs) seek answers regarding the sharp rise in pump prices. The demand was made following a statement by Minister of Energy and Mineral Development, Dr. Monica Musenero, who cited several factors contributing to the increase, including the depreciation of the Uganda shilling and a Shs200 increase in fuel excise duty.
Dr. Musenero presented her statement to Parliament on Wednesday, October 7, 2026, explaining that UNOC serves as a buffer against international price shocks and helps mitigate shortages and price increases experienced in neighboring countries. However, Deputy Speaker Thomas Tayebwa challenged the Minister to disclose UNOC's actual selling price to oil marketing companies. Tayebwa emphasized that Parliament needs to establish how much is added to the price before fuel reaches consumers.
The Leader of the Opposition, Joel Ssenyonyi, questioned the government's decision to increase the fuel excise duty, arguing that MPs had warned during the budget process that the additional tax would contribute to higher fuel prices. Other legislators called for temporary tax relief on petroleum products and the suspension of the Shs200 excise duty increase, citing potential wider effects on the economy.
Defence Minister Kiryowa Kiwanuka noted that Uganda relies entirely on imported petroleum products and that the country's fuel prices are affected by international oil prices. He stated that Uganda is not experiencing a fuel shortage but is facing a price challenge driven by international developments, including disruptions linked to the Strait of Hormuz.
MPs also raised concerns about the depreciation of the shilling and its impact on fuel prices and the wider economy. Remigio Achia stated that the shilling's decline from about Shs3,600 to Shs4,000 against the dollar had increased the domestic debt burden by an estimated Shs7.6 trillion without additional borrowing.
Minister Musenero promised to provide the detailed UNOC selling price, which she had not yet received. The debate was subsequently adjourned pending a comprehensive government statement addressing fuel prices, the exchange rate, and the broader state of the economy.
The rising fuel prices have sparked concerns among legislators and the general public, with many calling for government intervention to mitigate the effects. The parliament's demand for transparency in UNOC's pricing structure is seen as a step towards addressing the issue.
Key points
- The Ugandan parliament has demanded details on UNOC's fuel pricing structure amid rising pump prices.
- The government cited several factors contributing to the price increase, including the depreciation of the Uganda shilling and an increase in fuel excise duty.
- Legislators are calling for temporary tax relief on petroleum products and the suspension of the Shs200 excise duty increase.
