We are soon finding a solution to skyrocketing commodity prices, says Museveni

President Museveni has described as small, the issue of committee prices that have skyrocketed in the recent months and noted government will soon find a solution.

“The issue of skyrocketing commodity prices like petrol, fertilizers is man made by our friends in Europe .For me am not worried about them(increased prices).If we handled corona, what can we not handle,” Museveni said.

The president was speaking during the International Labour day celebrations at Kololo Independence grounds.

Prices for a number of commodities have in the past two months gone up at terrific speed but this has been partly blamed on the ongoing Russia-Ukraine war.

A number of people have expressed concern over failure by government to come to the aid of its citizens.

However, speaking on Sunday, Museveni said government will soon find a solution to the problem he said was caused by “our friends from the west.”

“We are trying to talk to them quietly. I’m not worried. We shall find solutions. We are talking quietly to Western Europe and Russia. We shall brief you at the right time. I am not worried because we have solution.”

Museveni however, noted that for some of the commodities whose prices have gone up, Ugandans don’t  have to worry because they have alternatives.

“Africans really confuse themselves. If there’s no wheat or bread eat muwogo (cassava). You’re complaining that there's no bread or wheat, eat muwogo. I don’t eat bread myself.”

Museveni’s comments are however a contradiction with what the Ministry of Finance Permanent Secretary, Ramathan Ggoobi recently said.

Ggoobi told journalists there is nothing government can do on the issue of rising commodity prices.

“We are not going to subsidise anything. Subsidies don’t work and that is bad economics. Those who have done it have faced problems. Subsidies tend to take money to wrong people and not those you intend . Mafia can organize and take all money for subsidies,”Ggoobi said.

He also noted that government will not control prices of commodities since that is also bad economics that doesn’t work.

Ggoobi explained that controlling prices can lead to creation of a number of unintended practices which is bad for the economy.

“Idi Amin was the first to do it but it backfired. During his time, Uganda was worse off than it is now.If you are not producer of a good, why do you determine its price. Let businesses compete. If businesses overcharge, customers will go away. Some of those who take this opportunity to overcharge consumers will end up burning their fingers. We are not going to control prices,” he said.

The Ministry of Finance Permanent Secretary also said government will not waive tax on fuel , especially import duty , noting that this will deny government revenue it needs to run.

“Waiving tax is not  the answer but will create more problems .Government will not have enough revenue but prices continue to be up. The problems(of increased commodity prices)  are external. They are worldwide and not only in Uganda.”

Ggoobi however warned that government has to be careful with the measures it undertakes in a bid to solve this situation that he said is only temporary.

“We have to be careful with the medicine we give.  You can’t treat cancer with paracetamol. We have to undergo process of treating cancer. The economy is like a human being. It changes every time. Right now the economy is moody but will be happy soon.”