More misery for poor Ugandans as fuel prices hit new high

More misery for poor Ugandans as fuel prices hit new high

Motorists around Kampala are crying out over the hike in fuel prices calling for government intervention.

Pump fuel prices have been on the rise since the beginning of the year.

Some analysts have expressed fear that Uganda may face a situation similar to 2007, at the peak of the post-election violence in Kenya.

The average Fuel Price across the Country is Shs4,048  per litre of petrol, while diesel is at Shs3,693  a litre.

Eazzy Banking

The hike in fuel prices comes at a time that the shilling is depreciating against the dollar and is beginning to bite motorists in the transport business.

Taxi drivers and boda-boda operators say the rise in fuel prices has affected their daily earnings, yet passengers are not willing to pay extra.

Those in export and agriculture business say the high fuel prices could also lead to increased production costs.

There are fears that the situation may worsen, as Uganda Revenue Authority begins collecting the new taxes on fuel.

The Government imposed a Shs100 tax increment on fuel in in the Financial Year 2018/19 with the aim of raising Shs 202 billion for road maintenance.

Power distributor Umeme uses fuel to power its transformers. It is the same with Uganda Electricity Transmission Company Limited (UETCL), which sells power in bulk.

This, coupled with the appreciation of the dollar against the Uganda shilling, could see electricity prices go up in the next quarter.

Inflation rate, exchange rate, international fuel prices are specifically considered because they affect the cost of generation, transmission and distribution of electricity, which affect the end-user tariff.

The Uganda shilling was unchanged on Monday, drawing support from a slowdown in appetite for dollars from both commercial banks and merchandise importers.

Commercial banks quoted the shilling at 3,875/3,885, same level as Friday’s close.

Share:

You must be logged in to post a comment Login