Chris Kiwawulo and Ibrahim Kasita
6 May 2008
Kampala — THE fuel shortage in Kampala and other parts of the country has persisted for a second week, leaving several filling stations dry. There were long queues of motorists at many of the city filling stations yesterday.
East Africa is facing an acute shortage because a big ship, carrying diesel, broke down at the high sea and had to be sent back to the Gulf for repair.
As a result, the price of diesel has exceeded that of petrol. Diesel was yesterday selling at sh2,660 in Kampala, while petrol was at between sh2,500 and sh2,570. Kerosene had also increased to sh2,090 from sh2,020 last week.
But according to Ivan Kyayonka, the Shell country manager, the worst part is over and the situation should normalise soon.
"The ship docked at Mombasa over the weekend," he told The New Vision yesterday. "But it takes time for the fuel to flow through the pipeline. We loaded some trucks from Mombasa and they started arriving on Monday."
The diesel shortage also threatens to affect the electricity supply. Uganda procured 100 megawatts of diesel-powered generators to supplement the falling hydropower production in Jinja. But the generators risk running out of diesel.
Migereko yesterday pleaded with the Directorate of Water Development to permit more water release for electricity generation at the Jinja hydropower facilities to bridge the gap.
"I asked the water department to allow us use more water for one week as we are sorting out the diesel situation," he said in an interview.
"The week has elapsed but the supply of diesel is still not good."
Kobil Uganda spokesperson Hannington Mpiima said the rising world oil prices had also pushed up the local prices. World oil prices hit a record high of $120 a barrel last week. Transport fares, both within the city and to upcountry destinations, have gone up accordingly.
Fares within Kampala have increased by sh300 to sh500, while up-country fares have risen by as much as sh5,000.
Transport fares for Luzira and Bweyogerere went up from sh700 to sh1,000, for Mukono from sh1,000 to sh1,500.
Bus fares to Rukungiri have risen from sh15,000 to between sh18,000 and sh20,000. Mbarara rose from sh8,000 to sh12,000 and to Kabale from sh18,000 to over sh23,000.
John Ndyomugyenyi, the chairman of Uganda Taxi Operators and Drivers' Association, said the increasing prices for all commodities, including fuel, had an effect on the fares.
"We have for long been against a price increase but now our hands are tied. The drivers argue that the prices of everything have gone up. To stay in business, they say, they have to follow suit."
Ndyomugyenyi called upon the Government and other stakeholders to intervene in the rising prices of all commodities.
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