Uganda: Fuel Prices Hike Alarms Transporters, Public

4 September 2023
Nile Post News (Kampala)

Transport operators have raised concerns over the increasing fuel prices, and asked the government to intervene.

Currently the pump price for petrol is at shillings 5430 while diesel ranges between 4999 and 5200 shillings.

Fuel prices had stabilized, but in the past couple of weeks they have started to rise. A litre of petrol is trading between 5100 and 5430 shillings per liter, while diesel, which had reached 4600/- at some stations, is now between 4999 and 52,00/-.

Those in the transport industry decry the prices, saying that they spend a lot of money on fuel and their passengers are also hesitant to pay more given the current economic situation in the country.

Every time fuel prices shoot up; the price of commodities also go up since dealers blame this on high transport costs involved in delivering goods on the market.

Danel Mushabe, one of the fuel traders, attributes the increase to a number of factors including low production by the oil Producing Companies under the Organization of the Petroleum Exporting Countries (OPEC).

Mushabe adds that the dollar's appreciation against the shilling cannot be ignored as it also plays a major role in inflation.

However, the state Minister for mineral development Peter Lokeris says the government is hopeful that oil prices will come down because there is no shortage of fuel.

The National Bureau of Statistics recently reported a decline in inflation from 3.9 per cent to 3.3 per cent but this is likely to change given the current situation.

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