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 weekâ€™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.
â€œInstability in the Middle East and supply shortage in America have raised the prices,â€ Ivan Kyayonka, Shell chairman said.
Leopold Tzeuton managing director Total Uganda said the shillingâ€™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.