of Energy and Mineral Development have defended the petroleum distribution
companies in Uganda against accusations that they are overcharging motorists for
says that it is still convinced that the fuel product distributors are well
within acceptable margins, but that the sky-rocketing consumer prices are
mainly due to the increase in global crude oil prices.
in Uganda have in recent weeks risen by more than 500 shillings per litter,
with petrol seeing the highest increases to sell at 4,400 shillings a litre.
companies have attributed this to the high global crude prices which have gone
from about zero to 80 US Dollars a barrel in less than two years.
first affected by a decline in demand in early 2020 when the global economy
came to a standstill and prices collapsed. Later
production also was affected by the lock down countries instituted against the
economies reopened this year, the demand also increased and reports show that
China, the second largest economy is further stepping up demand for oil to feed
its manufacturing and automobile industries.
seen the prices of finished products go up around the globe including Uganda
and East Africa. The ministry
says that the petroleum prices in Uganda are still within the reserve prices
that the government set. And there is no proof that any marketer in Uganda has
violated the reserve price, which the government keeps secret from the public.
Muyita, the spokesperson ministry of energy says that even though Uganda
maintains a free market economy policy, they have control over how far the
prices can rise.
“There are ……
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He has also
said that the disruption of production due to COVID-19 has also led to the
increase in the crude oil. He adds that probably next month.
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advantage of the consumer.”//
the global scene, the ministry thinks that oil majors are facing the pressure
to increase prices and meet their investments and costs of production because
Eng. Energy Efficiency, David Birimuye has said that car manufacturing
companies have a move for the world to start using electric cars from the fuel
based cars so the shock is extended to Africa as well.
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shock is extended.”//
Minister for Energy, Okaasai Opolot says government is regulating the price
levels to match the global trend and that the increase in fuel prices the
private sector is not doing it without government knowledge.
Okaasai also said that the increase in the fuel prices is not in Uganda alone
it’s the same case in all the East African countries and Uganda is even
slightly lower than some countries in the region.
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by the global."//
He adds that
government has got reserves where they can keep the fuel that can run the
country for a whole month and that the increase in the fuel prices is not
intended by the private sector.
“We only know ….
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motorists are feeling the pinch and have devised different means of copping with the situation, yet those in motor transport business are counting loses.
driving a Subaru, “My expenses increased from shillings 160,000 to
shillings 190,000 full tank, and this means a lot to my livelihood as I fore go
some necessities for the sake of fuel.”
only identified as joy says this has restricted her operations through limited
movement and a decreased expenditure on some essentials.
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eating less ……….
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movement is essential.”//
Mawa a taxi driver at Kampala- Wakiso stage, his fuel expenses have jumped from
between shillings 120,000-140,000 to between shilling 140,000- 150,000 which
decreases his income.
//Cue in; “Betuvuga
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ekumi n’omukaaga ate.”//
a boda-boda cyclist says passengers refuse to add on the transport fare, and a
liter which used to make at least shillings 10000, now makes shillings 7000.