In just one year, Uganda’s bold decision to grant UNOC exclusive fuel importation rights has reshaped the country’s energy landscape. Since assuming the mandate in July 2024, UNOC has delivered results that many thought were impossible in such a short period.
Behind this success lies a combination of political will, strategic partnerships, disciplined execution, and a team determined to prove that a national oil company can operate with efficiency.
In this interview, UNOC chief executive officer Proscovia Nabbanja breaks down how the sole importation model has lowered prices, stabilised supply, overcome regional hurdles, and set the stage for future expansion into products like liquefied petroleum gas.
Since UNOC began sole importation in July 2024, it has supplied over 3.6 billion litres of fuel and generated about $150m. How have you been able to achieve this efficiency so quickly?
It is the result of coordinated government backing, strategic partnerships, and disciplined execution.
The transition was supported at the highest political levels, with consistent involvement from the Presidency, ministries of Energy, Finance, Parliament, and the Attorney General.
We also carried out deliberate stakeholder engagements with authorities in Uganda, Kenya, and Tanzania, ensuring that the policy change was understood and accepted before implementation.
The partnership with Vitol Bahrain has been pivotal, as Vitol supplies UNOC with the required monthly fuel volumes on credit, without the need for letters of credit or guarantees.
Internally, UNOC’s workforce has operated with exceptional commitment, often working long hours to ensure an uninterrupted supply.
This operational reliability is underpinned by strict compliance with supply agreements, adherence to regulatory standards, and a strong risk-management framework.
Fuel prices have been relatively stable compared to recent years. What has changed?
We have eliminated pricing distortions. All oil marketing companies now receive fuel at a uniform wholesale price, a major departure from the previous system of inconsistent and discriminatory pricing.
By eliminating middlemen, removing the need for costly letters of credit, and securing fuel on competitive terms, the supply chain became more efficient.
This stabilised monthly deliveries, reduced speculative pricing, and allowed oil marketing companies to buy fuel at uniform, transparent rates.
Additionally, our margins are modest compared to what middlemen previously charged, and the pricing structure has no hidden charges.
In the past, oil marketing companies would receive unexpected demurrage or after-delivery invoices. Today, UNOC provides a single, final price that does not change.
This certainty has allowed oil marketing companies to offer more competitive pump prices, benefiting motorists across the country.
There had been some resistance, criticism, and fear of creating a monopoly in the form of UNOC’s sole fuel importation role. What could have caused this?
I think initially, many people did not understand our mandate. We were assigned the role of sole importer of petroleum products. Perhaps many people thought we were trying to replace the in-country distribution, which is handled by oil marketing companies.
But over time, our role has been understood. This clarity has helped in easing operational planning.
How were you able to build technical and financial capacity in such a short period?
We were not starting from zero; we had been importing large volumes since 2020 and were already negotiating financial and operational arrangements for scaling up, including discussions on procuring our own vessels.
There were challenges with Kenya regarding pipeline access and importation licences. How did you manage and what lessons emerged?
The challenges in Kenya required a combination of careful planning, diplomatic engagement, and presidential involvement.
Government had communicated its policy shift to Kenya and Tanzania, backed by extensive government-to-government discussions before implementation began.
Operations commenced only after UNOC had fulfilled every regulatory requirement, including securing the appropriate licences. It was tough, but we managed to navigate.
The challenges, however, offered us broader lessons, which have strengthened and enabled us to ensure that we have equitable access to fuel infrastructure.
The model seems to be working for fuel. Do you have plans to replicate it on other products?
Our immediate focus remains on completing ongoing flagship projects that will strengthen our financial independence and long-term sustainability.
However, we plan to begin supplying liquefied petroleum gas as a way of building buffer-stock infrastructure to safeguard against supply disruptions.
Of course, this is just a plan still on paper, but when it is finally implemented, it will draw lessons from the fuel deal between UNOC and Vitol.