The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | THE INDEPENDENT | The rise in fuel pump prices across the country is more of an international than a local problem, according to an official from Uganda National Oil Company.
The official, speaking on condition of anonymity, cited higher global crude prices for the hike in prices though he accepted that local taxes are factored in the amount one finally pays at the pump.
The price of crude oil at the international market has exceeded USD 72 (265, 000 Shillings) a barrel.
The average value for diesel in Uganda during the period from January-April is estimated at 3,153 Shilling with a minimum of 3,050 Shilling and a maximum of 3,350 Shilling by the beginning of this week. But the average price of diesel globally during this period is estimated at is 5,181 Shillings. The current fuel prices are said to be the highest in the last four years.
Motorists, especially in the transport sector, think the government has increased the taxes on fuel leading to an increase in transport fares. At the old taxi park in Kampala, fares to Jinja, Iganga, Kamuli and Mayuge districts have been hiked by an extra 1000 Shillings.
Uganda National Oil Company General Manager, John Bosco Habumugisha could not be reached for a comment about the latest fuel prices. But in February, Habumugisha told URN that Uganda’s final fuel price includes transportation costs from Port of Mombasa into the country. At the time the price of crude per barrel was about USD 69 (253,000 Shillings).
Habumugisha predicted that the increase in global crude oil was likely to lead to a further hike in pump prices. He said the final pump prices are arrived at after factoring in the cost of refining, transportation and local taxes.
An official at the company equally dismisses claims that the hike in prices is linked to the increase in taxes on fuel.
A manager at one of the Petrol Stations in Kampala admitted that the global fuel prices are partly to blame for the current situation in the country. He also said the local taxation regime is still factored in.
The latest development comes at the time when the government is proposing a 100 Shillings tax increment on fuel in FY 2018/19. The 2018/19 Budget Framework Paper says the 100 Shillings duty on fuel will raise 202 billion Shillings needed for road maintenance.
Neighbors Tanzania raised the maximum price for petrol, diesel and kerosene on Friday, citing higher global crude prices and a weaker local currency. The maximum diesel price in Tanzania at the beginning of the week was 2,315, Tanzanian Shilling, an equivalent of 3,743 Uganda Shillings.
