Fuel taxes unchanged in 2 years - URA

Apr 17, 2011

THE Government has not increased taxes on fuel in two years, officials from the Uganda Revenue Authority (URA) have disclosed.

By Joshua Kato

THE Government has not increased taxes on fuel in two years, officials from the Uganda Revenue Authority (URA) have disclosed.

The only change was the addition of sh100 when the annual vehicle licensing fee was abolished.

Opposition politicians staging the walk-to-work campaign say increased taxation has led to increased fuel prices.

According to URA officials and fuel dealers, taxes on fuel have been stable for a couple of years now.

“Sh850 is charged on every litre of petrol, sh530 diesel and sh200 on paraffin,” explained Sarah Banage, the URA assistant commissioner in charge of corporate and public affairs.

Comparatively, however, a litre of petrol costs sh3,500, diesel costs sh3,030 and paraffin costs sh2,020.

This means minus the government tax, a litre of petrol would cost sh2,700, diesel would cost sh2,500 and paraffin would cost sh1,830.
According to Shell’s Ivan Kyayonka, the causes of fuel price increases are international.

“Prices go up according to international factors, more than local factors,” he said.
At the international market, a barrel of oil rose to sh297,000 in February from sh230,000 in December.
Currently in Nairobi, diesel is at Ksh107.52 (about sh3,000), petrol Ksh113.47 (about sh3,100).

In Rwanda during March, the pump price of a litre of petrol rose from Rwf965 up to Rwf1,015. Also, diesel prices shot up to Rwf1,015 from Rwf958. At the current exchange rate, of Rwf1 is equivalent to sh3.9.
This means a litre of petrol in Rwanda costs sh3,950.

In Tanzania, fuel prices have gone up by an average of 33%, reaching about Tsh1,970 per litre from Tsh1,462. The equivalent of Tsh1 is sh1.51. This means a litre of petrol in Tanzania costs sh3,000.

Last week, South Africa’s energy department said in a statement that the pump price for petrol would rise to 9.96 rand a litre from 9.42 rand. At the current exchange rate, 1rand is sh348, meaning that a litre of petrol is costing sh3,467.

In the US, a litre of petrol is costing sh3,400. A gallon of petrol goes for $5 (equivalent to four litres).


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