# Uganda petroleum procurement and pricing dynamics

> Live situation record from CLSTR: https://clstr.news/situations/uganda-petroleum-procurement-and-pricing-dynamics
> Updated: 2026-09-19T13:29:21.000Z. Sources: 18. Developments: 2.

Uganda has faced economic challenges regarding fuel pricing, characterized by ‘asymmetric price transmission.’ This phenomenon involves retail costs rising quickly in response to global crude oil increases while failing to decrease significantly when wholesale costs drop, creating a ‘ratchet’ effect that burdens the transportation, agriculture, and manufacturing sectors.

In response to procurement concerns, President Yoweri Museveni criticized previous arrangements as a “government-to-middlemen” model that allowed Kenyan intermediaries to fleece the country. During reflections on his 82nd birthday, Museveni revealed that the late Kenyan politician Cyrus Jirongo had alerted him as early as 2019 to irregularities in Uganda’s petroleum procurement. 

To address this, Uganda transitioned to direct imports via the Uganda National Oil Company (UNOC) in partnership with Vitol. Officials report this shift has reduced fuel premiums for diesel, petrol, and aviation fuel. 

Kenyan President William Ruto has defended Kenya’s government-to-government (G2G) fuel importation model, which was established in 2023 to mitigate US dollar shortages and ensure fuel security. Ruto argued the G2G framework is efficient and cost-effective, as it eliminates brokers by dealing directly with producers. Meanwhile, the Motorist Association of Kenya has previously called for a forensic audit of the Kenyan procurement system.

## Claims

- The late Cyrus Jirongo alerted Museveni in 2019 that Uganda was purchasing petroleum through middlemen in Kenya. (corroborated by 6 sources)
- Uganda changed its petroleum procurement model in 2023 by partnering with Vitol and the Uganda National Oil Company (UNOC). (corroborated by 5 sources)
- Uganda's petroleum import costs decreased following the 2023 shift in procurement strategy. (corroborated by 3 sources)
- Kenya's government-to-government (G2G) fuel deal was introduced in 2023 to address US dollar shortages. (corroborated by 2 sources)
- President William Ruto defended the G2G model, stating it ensures fuel is supplied by producers without middlemen. (single source)
- President Museveni called for deeper African economic integration and a stronger common market. (single source)

## Timeline

### 2026-09-19: Museveni identifies Kenyan whistleblower in Uganda fuel procurement dispute

President Museveni revealed that Kenyan politician Cyrus Jirongo alerted him in 2019 to fuel middlemen in Uganda. Museveni has since shifted to a new procurement model involving Vitol and UNOC.

13 sources. https://clstr.news/cluster/uganda-fuel-procurement-shift-sparks-audit-demands-in-kenya

### 2026-09-19: Uganda fuel prices face asymmetric price transmission

Uganda faces a ‘ratchet’ effect in fuel pricing, where retail costs rise quickly with global crude prices but rarely decrease when wholesale costs fall, impacting various economic sectors.

5 sources. https://clstr.news/cluster/uganda-fuel-prices-face-asymmetric-price-transmission

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Cite as: Uganda petroleum procurement and pricing dynamics. CLSTR, https://clstr.news/situations/uganda-petroleum-procurement-and-pricing-dynamics