Fuel Hikes Threaten Uganda's Central Bank Inflation Target

Fuel prices in Uganda have continued to oscillate between 6,300 shillings and 6,700 shillings per litre for both petrol and diesel since the second quarter of 2026.

This development threatens the Central Bank's inflation target, which is a key concern for practitioners and businesses operating in the country. The high fuel prices contribute significantly to the average prices of goods and services, making it challenging for the Central Bank to maintain price stability.

The legal context surrounding this issue involves the Uganda National Bureau of Standards (UNBS) regulations on fuel pricing, which are enforced by the Ministry of Energy and Mineral Development. The UNBS sets standards for fuel quality and safety, while the ministry regulates the sale of fuel in the country. The Central Bank's inflation target is also influenced by the Exchange Control Act, which governs foreign exchange transactions.

The key parties involved in this issue are the Central Bank, the Ministry of Energy and Mineral Development, and the Uganda National Bureau of Standards. Practitioners should monitor the developments closely to understand how they will impact their clients' businesses and investments. Businesses operating in Uganda should also be aware of the potential risks associated with high fuel prices and take necessary measures to mitigate them.