The Government of Uganda, through the Ministry Of Energy And Mineral Development, has come out to explain the probable causes of the escalating fuel prices and scarcity in some parts of the country.
Currently, a litre of Petrol goes for as high as UGX6630 at some fuel pumps in Kampala while in some parts of the country like Hoima and Kanungu, petrol has reportedly run out.
In a statement titled STATEMENT ON THE ESCALATING FUEL PRICES AND THE SUPPLY DISRUPTIONS AT MALABA AND BUSIA BORDER POINTS, the Energy ministry outlines the possible causes and what the government is doing to quell the situation.
Below is the outline:
1. Uganda is a net importer of petroleum products in a liberalized downstream petroleum market with an average current daily consumption of 6.5 million litres. Uganda loads its products through the terminals located in Eldoret, Kisumu, Nairobi and Mombasa and supply is majorly through road transport
2. Supply was normal with trucks being cleared as usual and driver were allowed to present negative COVID-19 results from Kenya until 1st January 2022 when a directive was issued requiring all truck drivers to undergo testing at Malaba and Busia entry points. This resulted in a buildup of a queue of trucks as none were entering the country.
3. Following the failure to maintain replenishment of stocks and where trucks had spent ten (10) days in the queue, the turnaround time was affected and reduced stocks for Petroleum products in the country.
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5. With the full opening of economic activities, there has been an increase in uptake of Petroleum Products which saw a spike in consumption in the country that affected the 10-day stock levels. The very low replenishment based on the truck delays at the borders resulted in some stock out of Petrol at some outlets.
6. Uganda’s Oil Marketing Companies have most of their trucks in the traffic between the Kenya loading points and the borders and once cleared in a few days, supply and prices will return to normal and there is no need for the public to panic.
7. Speculators who are hoarding petroleum products and leading to unnecessary hike in fuel prices are advised to desist from this bad practice. The price of Petrol in the country should not exceed UGX. 5,000 per litre. The cases of scarcity in districts such as Hoima will be addressed shortly with the ongoing replenishment.
8. The government (security and other authorities) is doing everything possible to prioritise the handling of Petroleum Products at the borders to ensure build up in stock levels in the country.
