New Vision (Kampala)

Uganda: Fuel Shortage Eases

Conan Businge and Francis Kagolo

5 January 2009


Kampala — THE petrol shortage, which has destabilised the transport sector for about three months, has eased. However, the prices are still high.

A number of filling stations by yesterday had petrol. However, the prices are still ranging between sh2,600 and sh3,100 per litre. Before the increase in prices early last year, petrol was sold at about sh2,600 a litre at all filling stations

Shell filling stations of Kaazi, Jinja Road, Nakawa, Nateete and in the city centre have kept their petrol prices low at sh2600 per litre.

Mo Petro, City Oil and Engen filling stations sell at between sh2,810 and sh3,100 a litre.

Diesel prices are still ranging between sh2,390 and sh2,490 per litre at filling stations in and around town.

There are no more vehicles queuing for fuel at filling stations in and around the city as it was before and during the festive season.

The fuel supply in the country is expected to continue.

Energy minister Daudi Migereko said: "The fuel shortage will be no more. We are trying to keep a constant flow of fuel in the country."

He explained that over the festive season, there was a high demand arising from motorists that were travelling long journeys to and from upcountry. "We could just not contain the demand. It slightly overshot the supply of fuel in the country by then."

For close to a week, during the festive season, many filling stations had run out of petrol. Migereko advised oil companies not to depend only on the Mombasa oil refinery for oil products so as to avoid more petrol shortages in the country.

He explained that the refinery is not producing the required capacity, "because it is an old state and needs to be refurbished. The refinery cannot stand the ever increasing demand."

"We are encouraging them to get fuel from the Middle East. Over Christmas, some of the companies started importing fuel from the Middle East," Migereko said.

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