Fuel pump prices have drastically gone up in the past two weeks in Kampala and the surrounding areas, with some filling stations registering a hike by over sh600 on a litre of petrol.
However, the price increases vary from one filling station to another. At most Shell and Total filling stations in and around Kampala, petrol prices rose from sh3690 to between sh4020 and sh4350 per litre.
Diesel, which used to go at sh3200 is now selling at sh3500, registering a sh300 increase.
Some small filling stations which were selling petrol at between sh3550 and sh3650 per litre, have now increased the price of petrol to between sh3750 and sh3800.
Diesel at these filling stations was going at between sh3150 and sh3200, but it has also now shot up to between sh3300 and sh3450.
These prices changes were noticed at filling stations in the city centre, as well as along Bombo and Gayaza roads.
The sharp rise and varying prices have left many motorists’ tongues wagging, with some suspecting that there could be a new tax being introduced or an increase on fuel prices due in the forthcoming budget.
“The prices are going up without any given explanation, and they are not uniform. Fuel dealers increase pump prices at will without anyone stopping them. I think it is high time the government thought about regulating fuel prices,” Geoffrey Zinga, a truck driver in Kampala told the New Vision in an interview.
However, the government has time and again said they cannot determine pump prices because Uganda is a free market economy where commodity prices are determined by forces of demand and supply.
This, therefore, gives the fuel dealers leverage to fix pump prices at their own will.
Rajni Tailor, the fuel dealers’ chairperson, was equally surprised by the increasing fuel prices and the varying prices in different areas.
“The dollar rate has been going down and the global fuel prices have been relatively stable. I wonder why dealers would increase pump prices. I was going to Jinja last week and I bought petrol at sh4330, a litre at a Shell filling station in Kampala, but I found another Shell along Gayaza road selling fuel at sh4,030 per litre. I called the Shell managers but they said they don’t fix pump prices. I don’t know what criteria they are using to determine fuel prices. Something must be wrong somewhere,” Tailor told the newspaper.
By Wednesday morning, the forex rates were trading at sh3,590 and sh3,625 buying and selling respectively, a reduction from over sh3700 at the beginning of this year.
Asked whether the increase is in anticipation of a new tax or rise in fuel taxes in the forthcoming budget, Tailor said even if there is to be a rise in fuel taxes, that should not justify an increase in pump prices now.
“Such an increase should come after the budget has been read in June, not now. Fuel prices in Uganda are way higher than those in Kenya and Rwanda, yet fuel to Rwanda goes through Uganda. But the electric cars are coming soon, this will come to an end,” he stated.
Uganda has had a history of fuel dealers increasing pump prices at will, which affects consumers especially motorists because Uganda is a liberal economy and there is no regulation of fuel prices.
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