FUEL prices in Uganda have gone up again. Most pump stations in and around Kampala, visited by The New Vision yesterday, increased their prices by about sh100. The prices went up from sh2,250 to sh2,340 for petrol and from sh1,880 to sh1,990 for diesel. Kerosene increased from sh1,600 to sh1,720.
The increase was noticeable at Shell, Gapco, Total, Petro, Kobil, Caltex and City Oil filling stations in the city and the suburbs. Some fuel stations, however, had by press time not yet implemented the price hike.
Shell Uganda chairman Ivan Kyayonka explained that a combination of factors was responsible for the rise, particularly the rising world oil prices and the appreciation of the dollar against the shilling.
Following the fuel tax increment announced in the new budget, pump prices rose from sh2,170 to sh2,360 for petrol and from sh1,850 to sh1,980 for diesel.
In his budget speech, Finance minister Dr. Ezra Suruma announced that from July 1, excise duty on petrol would increase by sh150 and on diesel by sh80. This pushed the tax on diesel from sh450 to sh530 per litre and on petrol from sh720 to sh870.
However, in mid-July, world oil prices went down from $76.40 to $75.44 per barrel, pushing down local prices from sh2,360 to sh2,250 for petrol and from sh1980 to sh1880 for petrol.
The reduction, experts argued, was due to a healthy stock on the world market and gains made by the shilling against the US dollar.
Since then, international oil prices have been fluctuating but the local oil dealers had up to now been hesitant to make any hikes as they monitored the situation.
Fuel price goes up
