The government has through the ministry of energy and mineral development spoken out as to why the prices of fuel have escalated in the country.
In a statement released on Saturday, January 14, the ministry said that the escalating fuel prices are due to supply disruptions, especially at Malaba and Busia border points.
It noted that due to an impromptu disruption caused especially by the delay in the release of the mandatory Covid 19 test results for the truck drivers at the border, affecting their turnaround time and failure for petroleum outlets to replenish their sock tantamount to the reduced stocks for petroleum products in the country.
“Supply was normal not until January 1 when the Ministry Health issued a directive requiring all truck drivers from Kenya to undergo covid19 testing at Malaba and Busia border entry points, this resulted into a buildup of trucks as none was entering the country,” the statements reads in part
Since the beginning of this month, Ugandans have witnessed an abnormal increase in fuel prices ranging from shs4,500 up to shs.10,000 a litter. This has sparked off debate especially with the school and full reopening of the economy.
However, the energy ministry adds that with the full reopening of the economic activities, there has been an increase in uptake of Petroleum products which saw a spike in consumption in the country thus affecting the 10-day stock levels.
Uganda is a net importer of petroleum products in a liberalized downstream petroleum market with an average current daily consumption of 6.5million liters through road transport, loading its products through terminals located in Eldoret, Kisumu, Nairobi, and Mombasa.
The Health Ministry however notes that since January 12, they have commenced free covid19 testing at the border entry points and that the pace of truck movement has started improving.
Once cleared, Government assured that petroleum supply and prices will return to normal and that the public shouldn’t panic because the trucks in traffic between the Kenya loading points and Uganda’s borders will be no more.
Rebecca Alitwala Kadaga, the Minister For East Africa Community Affairs on Friday 14, also noted that the council of Ministers at the East African Community had since resolved that henceforth the Republic of Uganda and Kenya will conduct antigen- testing on both sides at the borders to reduce on the backlog of trucks but she has since added that for the purpose of clearing the backlog the government has ended the testing for truck drivers and ordinary protocols resume after their clearance.
The energy Ministry thus urged speculators hoarding petroleum products leading to an unnecessary hike in fuel prices to desist from this practice or else risk penalties.
‘The prices of Petrol in the country should not exceed Shs5,000 per liter’’ the statement added promising that shortly an address on the scarcity in districts such as Hoima shall be made,” the statement read.
