Ugandans are yet again facing higher fuel prices, largely driven by tensions in the Middle East. The ongoing US/Israel-Iran conflict has unsettled global oil markets, disrupting supplies. For fuel-importing countries like Uganda, such shocks quickly transmit into higher pump prices, transport costs, and economy-wide inflation.
Recent data from the Uganda Bureau of Statistics shows that monthly energy fuel and utilities (EFU) Inflation experienced a 1.8 percent increase in April, up from 1.0 percent in March. This was largely due to a 4.8 percent increase in the monthly Liquid Energy Fuels Inflation, with petrol and diesel prices experiencing the biggest jumps.
Between January and June 2026, the average retail price of petrol rose from nearly Shs5,058 to Shs6,617, while diesel rose from Shs4,693 to Shs6,490 per litre. These increases translate into higher living costs in form of high food prices, manufactured products, and services for the average household. Could global oil price swings boost Uganda’s adoption of electric vehicles? The recent surge in global fuel prices is already accelerating the shift toward e-mobility in Europe, Latin America, and the Asia-Pacific region, as consumers seek alternatives to petrol and diesel vehicles. In Uganda, the economic case is particularly compelling when comparing electric vehicles (EVs) with traditional fossil fuel-powered vehicles. A recent study by the Economic Policy Research Centre (EPRC) shows that EVs are cheaper to operate and maintain than their fuel counterparts, mainly in terms of annual maintenance costs and energy consumption per kilometre.
A typical petrol or diesel vehicle consumes approximately 10 litres of fuel every 100 kilometres, costing the owner about $2,400 (Shs8.75m) a year in fuel alone. In contrast, EVs run on electricity worth just $400 (Shs1.45m) annually. The gap is even wider for buses, with the overall cost of ownership, operation and maintenance of an electric bus (E-bus) only 60 percent of its equivalent diesel-powered bus. For every 100 kilometres, the E-bus spends nearly Shs38,630 on energy, while its diesel counterpart requires energy worth Shs229,500. In addition, E-motorcycle riders earn on average Shs135,445 in weekly profit, compared to Shs93,855 for riders using petrol motorcycles. For many motorcycle riders, fuel is the biggest daily expense. Reducing that burden by switching to electric could mean more money for other needs such as food.
The EPRC study finds that the country’s EV adoption readiness has a moderate score of 0.67, which is above the African average (0.58), though still behind regional peers like Kenya and Rwanda. In addition, the e-mobility ecosystem is gradually taking shape, with over 80 active players spanning manufacturing, financing, energy provision, policy, infrastructure and transportation. Charging stations and battery-swapping networks are expanding. However, significant barriers remain,including affordability with over 60 percent of respondents indicating that EVs are still too expensive at initial purchase.
Most potential users prefer leasing or other financing plans rather than outright purchases, highlighting a need for innovative financing models. Infrastructure gaps are equally critical. Inadequate charging/swapping stations (existing ones mainly located within urban areas), limited repair and maintenance services outside urban areas, and power reliability, continue to hinder EV adoption. To unlock the full potential of e-mobility, Uganda should accelerate investment in charging and battery-swapping infrastructure, expand access to affordable financing. Consistent and supportive policy measures, including tax incentives , will also be essential in lowering entry barriers and encouraging private sector participation.