Government has advised Ugandans to tighten their belts because it will not intervene to lower the rising fuel prices. The pump prices for petrol rose to Shs 4,250 Wednesday from the previous Shs 4,190 per litre range.
Generally, the prices have been on the increase right from April this year, causing an outcry among the motorists. Ruth Nankbirwa, Energy and Minerals minister says government cannot regulate the fuel pump price because the market was liberalized a long time ago.
The increase in prices of diesel and petrol in Uganda is attributed to the global rise in crude oil. The global oil prices had climbed above $80 a barrel by late September. Some analysts believe that oil prices will continue to rise amid surging demand and tight supplies.
The commissioner in charge of petroleum supply and distribution, Rev Frank Justave Tukwasibwe said that the rise in fuel prices is not unique to Uganda.
“It is global, not that it is unique to Uganda,” he explained, “but it has affected us so badly compared to others. That is why we are saying that our regulation is to ensure adequate supply in a free and competitive environment.”
According to Tukwasibwe, if other factors were constant, the fuel in Uganda would not be costly. He revealed that Uganda foots about $100 to transport 1,000 litres of fuel from the Port of Mombasa and $120 per 1,000 litres through Dare-salaam.
“For a Ugandan citizen to appreciate the price in Uganda, if all other factors were constant, to transport from the coast at Mombasa to Uganda, you add Shs 355 per liter,” he said. “To transport from Dar which is a little bit longer, you add Shs 430.”
According to Tukwasibwe, Ugandans should remain confident that the government will ensure that stocks don’t run out to lead to a crisis. He says all the government can do is to fight the smuggling of fuel from other countries and to fight adulteration of the fuel because of the high demand for petrol and diesel.
Global comparisons indicate that the price of gasoline in Uganda is relative to other countries. According to global petrol prices website, the average price of gasoline in the world by Wednesday was at Shs 4,406.92. In Tanzania, the price is Shs 3765 per litre, Shs 4,205 in Kenya, Rwanda Shs 4,064, Burundi Shs 4,277, Shs 3,522 in DR Congo.
Motorists in Venezuela enjoy the lowest fuel prices at less than a shilling per litre while those in Iran pay a mere Shs 213 per litre, motorists pay Shs 820 in Syria, Shs 952 in Angola, Shs 1,189 in Algeria, Shs 1,428 in Nigeria, Shs 1,620 in Ethiopia, Shs 2,090 in Egypt.
