Shilling gains dampen fuel price increases
May 17, 2004
Shilling gains against the dollar in recent days have cushioned Ugandan motorists against bigger rises in fuel pump prices despite the price of international crude oil being at a 13-year high.<br>
By Steven Odeu
Shilling gains against the dollar in recent days have cushioned Ugandan motorists against bigger rises in fuel pump prices despite the price of international crude oil being at a 13-year high.
The shilling has this week appreciated against the dollar to trade at 1,820/1,850 from last week’s trading of 1,890/1,910 for buying and selling.
Oil companies last week increased pump price for petrol by sh40, the second increment in less than two weeks.
The rise was attributed to a rise in international crude oil prices currently at $40 a barrel, pushed up by supply shortages in America and problems in the Middle East.
The latest increase brings petrol to sh1,890 per litre from sh1,850.
“Instability in the Middle East and supply shortage in America have raised the prices,†Ivan Kyayonka, Shell chairman said.
Leopold Tzeuton managing director Total Uganda said the shilling’s strength had provided a buffer.
Sources in the banking industry expect the shilling to appreciate further, as more dollar inflows are expected from the ADB/ECA meeting due this month.
Shilling gains against the dollar in recent days have cushioned Ugandan motorists against bigger rises in fuel pump prices despite the price of international crude oil being at a 13-year high.
The shilling has this week appreciated against the dollar to trade at 1,820/1,850 from last week’s trading of 1,890/1,910 for buying and selling.
Oil companies last week increased pump price for petrol by sh40, the second increment in less than two weeks.
The rise was attributed to a rise in international crude oil prices currently at $40 a barrel, pushed up by supply shortages in America and problems in the Middle East.
The latest increase brings petrol to sh1,890 per litre from sh1,850.
“Instability in the Middle East and supply shortage in America have raised the prices,†Ivan Kyayonka, Shell chairman said.
Leopold Tzeuton managing director Total Uganda said the shilling’s strength had provided a buffer.
Sources in the banking industry expect the shilling to appreciate further, as more dollar inflows are expected from the ADB/ECA meeting due this month.