24 February 2014

Uganda: Fuel Prices Rise in Uganda

Kampala — Fuels prices in different parts of Uganda went up unexpectedly causing uneasiness in the transport sector.

However industry sources say the real cause of the sudden increase in fuel pump prices is speculators who wanted to create scarcity and make quick profits.

Some economy analysts were quick to blame Uganda Revenue Authority (URA) for the high fuel prices because of its ongoing Single Customs Territory (SCT) project which started with fuel dealers, Vivo Energy and Total the leading importers of petroleum products.

URA started clearing fuel under Single Customs Territory procedure that requires that all imports are checked and cleared at one main border point of entry, in this case Mombasa,.This is believed to be the cause of the delays in clearing fuel destined for Uganda at Mombasa however inside sector reports indicate that some fuel importers don't know how to go about the procedures.

But the tax body in a circulated statement denied claims that SCT had brought delays and consequently fuel shortage. They blamed the shortage on the global oil prices exaggerated by speculators.

'The Ush50 to Ush100 increase in the pump prices of petrol was as a result of about 20% increase in world oil prices to $11 over the past few weeks. Similar and slightly higher price increases have been experienced in other countries in the region," a URA statement reads in part.

The pump prices for especially Petrol (super) and Diesel (ago) has been shifting but there has been a shift from Ush 3,600 (about $1.45) to Ush 3,800 or more depending on which gas station you go to and where.There has been an increment of more than Ush200 to the price at which motorist bought fuel two week ago.

The scarcity didn't spar upcountry towns where speculators took the game higher by applying the hoarding method and stocking to extort more money from motorist.

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