IMF Credits Uganda's State-Led Fuel Import System for Withstanding Middle East Conflict
The International Monetary Fund (IMF) has praised Uganda's state-led fuel import system for cushioning the economy from petroleum supply disruptions triggered by the Middle East conflict. The system, introduced in 2024, created a shorter supply chain that helped limit spillovers from the conflict.
According to the IMF's 2026 Article IV Staff Report, Uganda's resilience was partly due to its overall food self-sufficiency and low reliance on imported fertilizer. The report also noted that the fuel import mechanism introduced in 2024 had a short supply chain.
The system involves the state-owned Uganda National Oil Company (UNOC) placing orders with global commodities trader Vitol Bahrain E.C., which supplies petroleum products to UNOC, which then sells them to licensed oil marketing companies. This arrangement has improved security of supply and reduced price volatility by eliminating some intermediaries.