The Uganda government predicts that fuel prices are likely to shoot above 5000 shillings before the end of the year.
The energy ministry attributes the skyrocketing fuel prices to external factors especially the fluctuating dollar and US sanctions on Iran. This is having a toll on Uganda’s economy as most prices of goods and service rise.
Robert Kasande, the Permanent Secretary in the ministry of energy predicts a sharp rise in fuel prices up to Shs5000.
“It will reach Shs5000, if the international price continues to rise. I am not saying we are going to reach there but in the event that it happens, we have no option.”
“The international price has gone up, about a year ago it had hit rock bottom at about $38 per barrel but as we speak it is $75 per barrel. We import everything, we are not yet in production there fore we have no control over what the international rate offers,” he added.
According to Dr Fred Muhumuza, an economist, Uganda should have long term interventions including managing the exchange rate.
“We need to increase our exports. But now we are even failing to export Maize to our neighbours in Kenya and South Sudan.”
Muhumuza urges fuel consumers to be financially disciplined and limit their travels.
“Don’t make that journey if it is not necessary especially if your revenues are not able to increase with the fuel prices.”
