Fuel Prices In Uganda: A Costly Affair

how much is a litre of fuel in uganda

The price of fuel in Uganda varies according to the operator and area. As of July 2023, gasoline rates in cities like Kampala were higher than in less-populated areas. The price of diesel was 4690 Uganda Shilling per litre, while octane-95 gasoline was 5055 Uganda Shilling per litre. In US dollars, diesel costs around 1-1.2 USD per litre, and petrol costs around 1.2-1.3 USD per litre.

Characteristics Values
Price of octane-95 gasoline per litre 5055 Uganda Shilling
Price of diesel per litre 4690 Uganda Shilling
Price of diesel per litre in USD 1 – 1.2 USD
Price of paraffin per litre in USD 0.8 USD
Price of petrol per litre in USD 1.2 – 1.3 USD
Components of retail selling price of petrol Crude oil, OMC margin, transportation cost, freight costs, central government taxes, state government taxes, excise duty and other taxes

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Octane-95 gasoline: 5055 Uganda Shilling per litre

As of June 16, 2025, the price of Octane-95 gasoline in Uganda was 5055 Uganda Shillings per litre. This is higher than the average price of gasoline worldwide for this period, which stands at 4581.48 Uganda Shillings.

The retail selling price of petrol in Uganda is influenced by several factors, including the cost of crude oil, OMC margin, transportation costs, freight costs, and various taxes, including central and state government taxes and excise duty. These factors can vary across different areas and operators within Uganda, leading to slight differences in fuel prices. For example, gasoline rates in cities like Kampala tend to be higher than in less populated areas with fewer vehicles.

The competition among operators in Uganda's fuel market also plays a role in price variations. Some operators may offer lower rates to attract customers, but it is important to be cautious as the quality of fuel may vary. Reputable fuel providers in Uganda include well-known companies such as Shell, Total, Stabex, and Rubis.

It is worth noting that Uganda's fuel market is regulated, resulting in less frequent price changes compared to other countries. As of July 28, 2025, the price of diesel in Uganda was 4690 Uganda Shillings per litre, slightly higher than the global average of 4388.72 Uganda Shillings.

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Diesel: 4690 Uganda Shilling per litre

As of 28 July 2025, diesel in Uganda costs 4690 Uganda Shillings per litre. This is higher than the average price of diesel worldwide for this period, which is 4388.72 Uganda Shilling. The cost of fuel in Uganda varies according to the operator and area. For example, gasoline rates in cities like Kampala are higher than in less busy areas, such as villages. The price of diesel in US dollars is between 1 and 1.2 USD per litre.

The retail selling price of diesel in Uganda is based on several factors, including crude oil prices, OMC margin, transportation and freight costs, various government taxes, and excise duty. The price of diesel is also influenced by the level of competition among operators, with some offering lower rates to attract customers.

It is important to note that the quality of fuel can vary among operators, with some stations providing fuel of poor quality. To ensure the best quality fuel, it is recommended to use trusted providers such as Shell, Total, Stabex, and Rubis. These companies are known for providing reliable and safe fuel products.

When purchasing fuel in Uganda, it is advisable to avoid petrol stations near wetlands. These areas are prone to flooding during rainy seasons, which can result in the dilution of gas reserve tanks. Therefore, it is recommended to refuel at trusted outlets along the roads from Kampala to various parts of the country.

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Kampala fuel prices

Fuel prices in Kampala, Uganda, are determined by various factors, resulting in price variations across different fuel stations in the city. As of 2020, a litre of petrol costs around Shs3,960, while diesel costs approximately Shs3,700 at fuel stations like Total Najjeera and Shell Najjeera. However, at the Tosha Fuel station in Najjeera II Trading Centre, petrol and diesel prices are slightly lower, at Shs3,850 and Shs3,550 per litre, respectively.

The cost of fuel in Kampala is influenced by several factors, including the price per barrel of crude oil, which typically ranges from $50 to $70, equivalent to Shs185,000 to Shs259,000. The refining process and transportation costs, including pipeline, road, or railway fees, also contribute to the final price. Additionally, fuel prices in Kampala are subject to fluctuations due to seasonal and weather-related events, such as severe weather or natural disasters, which can impact the supply of gasoline and, consequently, the pump prices.

The Ugandan government's import duties, environmental regulations, and taxes can also influence fuel prices. While the government cannot directly control prices or wages, its policies and interventions in the energy market can impact the cost of fuel for consumers in Kampala and across Uganda.

As of June and July 2025, the price of octane-95 gasoline in Uganda was 5055 Uganda Shilling per litre, while diesel was priced at 4690 Uganda Shilling per litre. These prices are slightly higher than the global averages for the respective periods.

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Fuel tax in Uganda

As of July 2025, the Ugandan government has proposed to increase taxes on both diesel and petrol. The current price of diesel in Uganda is 4690 Uganda Shilling per litre, while the price of octane-95 gasoline is 5055 Uganda Shilling per litre. The proposed changes to the Excise Duty Act would increase the tax on petrol by Shs100 per litre and the tax on diesel by Shs150 per litre. This means that the Excise Duty on petrol would increase from Shs1,550 per litre to Shs1,650, and the tax on diesel would go up from Shs1,230 to Shs1,380 per litre.

The proposal has been met with some criticism, with concerns being raised about the lack of regulation regarding fuel dealers and the potential for them to set prices arbitrarily. Mr Bwambale, for instance, emphasised the need for the government to ensure that any tax increase results in improved service delivery, stating that consumers have a right to expect better services when they pay more taxes.

The Ugandan government has stated that the proposed changes to the tax laws are aimed at improving credit and consistency, creating a fairer and more predictable tax environment, and removing ambiguities that create loopholes. They also aim to enhance tax administration, encourage voluntary compliance, and empower the Uganda Revenue Authority to enforce the laws more effectively.

In addition to the proposed fuel tax increase, the Ugandan government has also proposed amendments to the taxation of beer and cigarettes. The excise duty on beer manufactured from local raw materials is proposed to increase from Shs650 to Shs900 to reflect inflation and current economic conditions. The government has also proposed a modest increase in excise duty on cigarettes to generate Shs19.40 billion, as the duty has not been adjusted since the 2017-18 financial year, despite a 28.8% increase in inflation.

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OMC margin and transportation costs

As of 2025, the price of a litre of fuel in Uganda is around 4690-5055 Uganda Shilling. The cost of fuel in Uganda is impacted by OMC margins and transportation costs, which are influenced by various factors such as trade policies, infrastructure, and geographical characteristics.

OMC margins refer to the profits retained by Oil Marketing Companies (OMCs) for their role in the fuel supply chain. OMCs are involved in the procurement, transportation, storage, and distribution of fuel products. Their margins are determined by factors such as operational costs, market conditions, and competition. In Uganda, the OMC margin is regulated by the government to ensure fair pricing for consumers and reasonable profits for OMCs.

Transportation costs play a significant role in the final price of fuel in Uganda. The landlocked nature of the country increases the cost of getting goods to market compared to neighbouring countries with more favourable geographical characteristics. Additionally, the condition and efficiency of transport infrastructure can impact transportation costs. Poor road or rail infrastructure can lead to higher transport costs, which are passed on to consumers in the form of higher fuel prices.

The Ugandan government has recognised the impact of transportation costs on the overall price of goods, including fuel. Efforts have been made to improve the efficiency of customs clearing procedures and reduce administrative costs associated with trade. The Single Customs Territory (SCT) initiative, implemented in 2014, aims to streamline customs procedures within the East African Community (EAC) partner states. By reducing clearance times and enhancing regional trade, the SCT has helped to lower the cost of doing business, including the transportation of fuel.

Furthermore, the Uganda Revenue Authority (URA) provides guidelines for determining the customs value of imported goods, including fuel. The customs value includes the cost of insurance and freight up to the port of importation into the EAC, such as Mombasa or Dar es Salaam. The URA publishes exchange rates monthly to ensure accurate conversions of customs values into Ugandan Shillings for tax calculation purposes.

In conclusion, the OMC margin and transportation costs are crucial factors in determining the price of fuel in Uganda. The Ugandan government actively works to minimise the impact of these costs on consumers through regulations and initiatives aimed at improving trade efficiency and ensuring fair market practices.

Frequently asked questions

As of June 2025, the price of octane-95 gasoline in Uganda is 5055 Uganda Shilling per litre. In Kampala and other cities, expect to pay between 1.2 – 1.3 USD for a litre of petrol.

As of July 2025, the price of diesel in Uganda is 4690 Uganda Shilling per litre. In Kampala and other cities, expect to pay around 1 – 1.2 USD for a litre of diesel.

The retail selling price of petrol in Uganda is influenced by the cost of crude oil, OMC margin, transportation cost, freight costs, central government taxes, state government taxes, excise duty and other taxes.

Yes, the cost of fuel in Uganda varies according to the operator and area. Fuel prices in cities like Kampala tend to be higher than in less busy areas, such as villages.

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