5 December 2012

Uganda: Fuel Prices Bite

Kampala — The rising fuel prices that have been generally blamed on the weakening shilling against the US dollar are beginning to worry transporters as they are likely to hike their transport charges, a survey done by East African Business Week (EABW) shows.

Transporters who talked to EABW in Kampala said that the rising fuel costs has greatly hurt their profits as they have not yet raised their fares.

"It's becoming difficult for us. We shall increase our fares if the prices do not come down," warned Ronald Kimbugwe a Kampala boda boda rider.

"My boss expects Ush20000 ($7.7) from me every day. This is irrespective of the changes in fuel prices," he stressed.

Samuel Kuteesa a trader at Kampala old taxi park says his monthly transport expenses have already risen from $9.6 (UShs25000) to $15.4 (USh40000) as a result of taxis increasing the fares.

He added that its already hurting salary earners as their salaries remain the same despite the increase in transport fares.

"The government should do something about these abnormal increases in fuel prices so that taxi operators stop oppressing passengers by abnormally increasing the transport fares since our salaries have remained," he explains

The increase in fuel prices has been sighted at many petrol stations in Uganda including Shell, Total, Gapco, Mogas, Engen and Kobil Stations.

Ivan Nsubuga a taxi driver says his wages have reduced and 80% of the money he has been earning is going to his boss.

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