Prime Minister Robinah Nabbanja has directed the Minister of Energy and Mineral Development to present a detailed report to Parliament on the spiralling fuel prices in the country.
Responding to a matter of National Importance raised by Buvuma Islands County MP, Robert Migadde on the fuel prices, the Prime Minister said that the increase in fuel prices is a global phenomenon, which has also troubled many Ugandans, especially in trade.
Migadde observed that prices of petrol had increased by over 17 per cent since the beginning of the new financial year, adding that this was not in tandem with global prices of petrol.
He observed that the price of petrol was at Sh3,900 and diesel was Sh3,500 by June 17, 2021 but noted that as of November 19, 2021 the prices of petrol had gone up to Sh4,600 in Kampala and Sh6,000 in Buvuma islands, whereas diesel is Shs4,200.
Migadde told the House that the global petrol prices, Uganda stood at US$1.3 per lire, which is higher compared to most of the regional countries.
“As per the global petrol prices, by November 15, 2021, Uganda stood at US$1.3 per liter, Burundi at US$1.2 per liter, Kenya at US$1.1 per liter, Rwanda at US$1.13 per liter and Sudan at US$0.6 per liter,” said Migadde.
Migadde was equally concerned that the skyrocketing fuel prices in the country have increased the cost of living for the public. He appealed to the Government to put in place measures to mitigate the effects of the high cost of fuel.
Busia Municipality MP, Godfrey Macho was concerned that the cost of fuel prices in the neighbouring countries was lower than that of Uganda. He asked the Government to open Uganda’s borders to enable Ugandans to buy fuel cheaply and thus reduce the cost of a trade.
Fuel prices in Kampala have hit a new high, with a litre of petrol going for as high as Sh4, 450 while diesel was quoted at Sh3, 999 at some stations last Monday. This is an increase by an average of 300 Shillings over the last two weeks.
A combination of factors, including the effects of COVID-19 on the supply chain, the resurgence of the global demand and new tax regimes in East Africa have led to this rapid change in the prices in Uganda.
Earlier this year, as economies picked up, pump prices in Uganda rose sharply from Sh3, 700 to Sh4, 150 per liter of petrol at Shell and Total stations and have been largely stable since April.
New tax measures also saw a 100 Shillings increase in the excise duty per liter, although this did not take immediate effect on the prices, at least in the first two months of the financial year.