Sky rocketing fuel prices in Uganda have nothing to do with economics - Secretary to Treasury
The government has said that the sky-rocketing fuel prices will soon come down.
The Secretary to the Treasury, Ramathan Ggoobi while expressing the cause of the hiked prices said that all responsible parties are working around the clock to bring the price down.
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He said that the increased prices have nothing to do with economics but stem from a global shock emanating from administrative policies during the covid-19 pandemic.
“Fellow Ugandans, the current spike in fuel prices has nothing to do with economics. It was caused by a temporary exogenous shock caused by administrative decisions to control the spread of #COVID19, here and globally. The responsible parties are addressing them,” he said.
“Soon the fuel prices will settle back to market-clearing equilibrium,” he added.
The Ministry of Energy in a statement over the weekend blamed the high fuel prices on the interruption in the supply chain at the common border with Kenya where transit truck drivers were protesting charging them for COVID-19 tests.
The Prime Minister, Robinah Nabbanja while addressing the issue on Friday also said that prices would soon be restored to normal.
“Government is aware of the public concerns about rising fuel prices but would like to assure the country that we are not in a crisis. The hiccup at the Malaba border was fixed. Prices should stabilize. Fuel dealers should not use this excuse to hike prices,” she said.
However, despite the reassurances from the government, fuel prices continue to climb with a liter in the oil city of Hoima hitting Shs 12,000 while petrol stations in Kampala are almost hitting Shs6000.
