Ruth Nankbirwa, the Energy and Minerals Minister says Ugandan should tighten their belts because the government cannot intervene to lower fuel prices. The pump prices for petrol had risen as high as 4250 shillings by Wednesday from about 4190 shillings per litre.
Generally, the prices have been on the increase right from April this year causing an outcry among the motorists. While Nankabirwa and her experts agree that prices of fuel have been on the increase, they say pump owners cannot be forced to lower the Price.
According to the Minister, the government cannot regulate the fuel pump price because their market was liberalized.
Generally, the prices have been on the increase right from April this year causing an outcry among the motorists especially those in the agriculture sector.
The increase in prices of diesel and petrol in Uganda is attributed to the global rise in crude oil. The global oil prices had climbed above $80 a barrel by late September. Some analysts believe that oil prices will continue to rise amid surging demand and tight supplies.
The Commissioner In Charge of Petroleum Supply and Distribution, Reverend Justave Tukwasibwe Frank told URN that the rise in fuel prices is not unique to Uganda alone.
“It is global, not that it is unique to Uganda,” he explained, “but it has affected us so badly compared to others. That is why we are saying that our regulation is to ensure adequate supply in a free and competitive environment.”
According to Tukwasibwe, if other factors were constant, the fuel in Uganda would not be costly. He revealed that Uganda foots about one hundred dollars to transport 1,000 liters of fuel from the Port of Mombasa and one hundred twenty dollars per 1000 liters through Dare-salaam.
“For a Ugandan citizen to appreciate the price in Uganda, if all other factors were constant, to transport from the coast at Mombasa to Uganda, you add 355 shillings per liter,” he said. “To transport from Dar which is a little bit longer, you add 430 shillings.”
According to Tukwasibwe, Ugandans should remain confident that the government will ensure that stocks don’t run out leading a crisis.
He says all the government can do is to fight smuggling of fuel from other countries and to fight adulteration of the fuel because of the high demand for petrol and diesel.
Some analysts indicates that price of gasoline in Uganda is relative to other countries. According to world petroleum prices website, the average price of gasoline in the world by Wednesday was at 4406.92 Uganda Shillings.
–URN
