Transforming Fuel Sector In Uganda: UNOC’s Influence On Pricing And Market Dynamics

Posted by: lukwago J in Business September 7, 2024

In a strategic move, Vivvo Energies Uganda (Shell) has recently slashed petrol prices to Shs 5,190 per litre and diesel prices to Shs 5,050 per litre, signaling a notable decline compared to previous pricing structures.

Following the enactment of the Petroleum Supply (Amendment) Act, 2023, UNOC has taken on the pivotal role of overseeing the importation of petroleum products, with a primary objective of optimizing the supply chain efficiency and fostering price stabilization within the market.

The active involvement of governmental bodies in negotiating price points, coupled with the market dominance of key players such as Vivvo and Total Energies, has sparked discussions surrounding the necessity for equitable pricing strategies and the promotion of healthy competition in the fuel industry.

UNOC’s strategic approach to price competitiveness

UNOC’s strategic initiative of engaging in direct importation processes and engaging in constructive negotiations with supply partners is poised to deliver tangible benefits to consumers by potentially driving down fuel costs and fostering a more competitive landscape within the market.

With UNOC gearing up to import a substantial volume of 180 million litres of fuel products, industry experts anticipate a ripple effect that will not only stabilize prices but also ignite a sense of competition among oil marketing companies, ensuring a seamless supply chain to meet Uganda’s daily fuel consumption demands.

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