Fuel hits new high
Apr 25, 2005
THE price of fuel has increased again, hitting its highest in over 12 months.
By Chris Kiwawulo
THE price of fuel has increased again, hitting its highest in over 12 months.
Petrol has increased from sh1,890 to sh1,990, diesel from sh1,640 to sh1,770 and kerosene from sh1,600 to sh1,700.
By yesterday, the adjustment was noted at all fuel stations including Shell, Caltex, Total, Petro and Kobil in Kampala city and its suburbs.
Petrol and kerosene increased by sh100 and diesel by sh130, a rise of over sh200 hardly in a month.
Earlier this month, fuel prices increased from sh1,450 to sh1,600 for kerosene, from sh1,550 to sh1,640 for diesel and from sh1,790 to sh1,890 for petrol.
Fuel dealers attributed the hike to the increasing world prices and the continued depreciation of the shilling against the dollar.
The shilling was last week posted between sh1,775 and sh1,790 against the dollar and is now trading between sh1,813 and sh1,823.
Shell Uganda chairman Ivan Kyayonka attributed the hike to the increase in the exchange rate. “The dollar has gained strength over the shilling forcing prices to increase,†he said. Uganda Taxi Operators and Drivers Association chairman John Ndyomugyenyi recently expressed worry over the increasing fuel prices.
Ndyomugyenyi said the prices were likely to increase further.
The first highest increase prices was in January 2004 when prices rose by sh150 from sh1640 to sh1,790 for petrol and from sh1,390 to sh1,540 for diesel.
This was after an increase in the consumption rate of fuel products in East Africa following a hitch on the Kenyan oil pipeline that reduced fuel supply.
THE price of fuel has increased again, hitting its highest in over 12 months.
Petrol has increased from sh1,890 to sh1,990, diesel from sh1,640 to sh1,770 and kerosene from sh1,600 to sh1,700.
By yesterday, the adjustment was noted at all fuel stations including Shell, Caltex, Total, Petro and Kobil in Kampala city and its suburbs.
Petrol and kerosene increased by sh100 and diesel by sh130, a rise of over sh200 hardly in a month.
Earlier this month, fuel prices increased from sh1,450 to sh1,600 for kerosene, from sh1,550 to sh1,640 for diesel and from sh1,790 to sh1,890 for petrol.
Fuel dealers attributed the hike to the increasing world prices and the continued depreciation of the shilling against the dollar.
The shilling was last week posted between sh1,775 and sh1,790 against the dollar and is now trading between sh1,813 and sh1,823.
Shell Uganda chairman Ivan Kyayonka attributed the hike to the increase in the exchange rate. “The dollar has gained strength over the shilling forcing prices to increase,†he said. Uganda Taxi Operators and Drivers Association chairman John Ndyomugyenyi recently expressed worry over the increasing fuel prices.
Ndyomugyenyi said the prices were likely to increase further.
The first highest increase prices was in January 2004 when prices rose by sh150 from sh1640 to sh1,790 for petrol and from sh1,390 to sh1,540 for diesel.
This was after an increase in the consumption rate of fuel products in East Africa following a hitch on the Kenyan oil pipeline that reduced fuel supply.