President Yoweri Kaguta Museveni has defended his government’s efforts to reduce fuel import costs and fight poverty, crediting a 2023 fuel supply agreement with international energy trader Vitol for helping Uganda purchase petroleum products at lower costs.
Museveni made the remarks on October 9, 2026, during Uganda’s 64th Independence Day celebrations at State House Entebbe, where he discussed government economic interventions and honoured distinguished Ugandans for their contributions to national development.
This year’s Independence Day celebrations marked 64 years since Uganda attained independence from British colonial rule on October 9, 1962. The event provided an opportunity for the President to reflect on the country’s economic progress, poverty reduction programmes and continuing efforts to improve household incomes.
Museveni said the 2023 agreement with Vitol enabled Uganda to purchase fuel directly from refineries, reducing reliance on intermediaries in Kenya.
“I was able to protect people from high fuel prices for some months because I had reached an agreement with a company called Vitol. We distanced ourselves from middlemen in Kenya and started buying fuel directly from the refinery,” Museveni said.
According to the President, the arrangement reduced fuel procurement costs by up to $36 per tonne for products such as petrol and diesel, helping to ease pressure on consumers during periods of rising international energy prices.
The agreement formed part of the government’s efforts to change Uganda’s petroleum supply arrangements and reduce the costs associated with importing fuel.
Uganda relies heavily on imported petroleum products, leaving domestic prices exposed to fluctuations in global oil prices, exchange rates, transportation costs, taxes and distribution margins.
However, the extent to which lower procurement costs translate into reduced pump prices depends on these other factors. The reported savings and their impact on consumers would need to be assessed against fuel pricing and procurement data.
During the same Independence Day celebrations, Museveni explained why his government turned to the military to encourage Ugandans to embrace commercial agriculture and income-generating activities.
The President said that by 2013, only 32 per cent of Ugandans were participating in what he described as the money economy. He said this prompted efforts to bring more households into income-generating activities.
Museveni cited Operation Wealth Creation, a government initiative that involved the army in distributing agricultural inputs and encouraging households to engage in productive economic activities.
The programme involved military officers, including Gen. Salim Saleh, and was intended to help households transition from subsistence farming to commercial agriculture and improve their livelihoods.
“I had to send the army to go and beg people to get out of poverty. We have to plead with the poor to get out of poverty,” Museveni said.
The President’s remarks reflect his government’s position that poverty reduction requires households to move beyond producing food mainly for their own consumption and participate in commercial activities that generate income.
However, farmers’ ability to make this transition can depend on access to markets, affordable financing, agricultural extension services, storage facilities and reliable prices for their produce.
The Independence Day ceremony also featured the recognition of military officers and civilians for their contributions to Uganda’s security, public service and national development.
In a notable moment, Museveni was himself among those reported to have received a medal of honour in recognition of his role in peace and security.
According to information shared about the ceremony, approximately 20 recipients were awarded the Order of the Commander-in-Chief, described in the post as the Uganda Prisons Service Medal, under the National Honours and Awards Act.
The exact name and category of the medal awarded to Museveni should be confirmed against the official list of recipients to establish the precise nature of the honour.
The awards formed part of Uganda’s annual Independence Day tradition of recognising individuals whose service has contributed to the country’s security, public administration and development.
Museveni’s remarks placed fuel affordability and poverty reduction among the key issues highlighted during the 64th Independence Day celebrations.
While the government has promoted changes to fuel procurement and programmes such as Operation Wealth Creation, the broader challenge remains ensuring that these interventions deliver measurable benefits to households and businesses.
As Uganda marked 64 years of independence, the President used the occasion to highlight his administration’s efforts to reduce the cost of essential commodities, expand participation in the money economy and recognise individuals serving the country across different sectors.
