Uganda Petroleum Products Market Size (2024 - 2029)

Uganda Petroleum Products Market Size Summary

The Uganda petroleum products market is poised for growth, driven by an anticipated increase in consumption across various sectors, particularly in transportation. Despite the initial setback due to the COVID-19 pandemic, which led to a decline in demand, the market is expected to recover and expand, supported by the growing need for diesel in the road, railway, and fishery industries. The transport sector remains the largest consumer of fossil fuels, with automobiles and domestic aviation leading the demand. The upcoming projects in the railway sector and the expected rise in automobile ownership, fueled by increasing per capita income, are set to further boost the market. However, the market's growth is somewhat constrained by the country's heavy reliance on wood fuel, which accounts for a significant portion of Uganda's energy consumption.

The lack of local oil refineries necessitates the import of petroleum products from countries like Kenya, China, and the United Arab Emirates, presenting both a challenge and an opportunity for market players. The potential commissioning of Uganda's first oil refinery by 2027 is expected to alleviate some of the domestic demand pressures. The market is characterized by fragmentation, with key players such as Vivo Energy Uganda Ltd, TotalEnergies SE, and Nile Energy Limited actively participating. Strategic moves, like Uganda's plan to revive oil product imports via Tanzania, aim to diversify supply routes and mitigate disruptions. Overall, the market's growth trajectory is supported by infrastructural developments and strategic initiatives, despite the challenges posed by its current energy dependency.