Transport operators in Uganda are sounding the alarm as fuel prices continue to climb, putting significant strain on their businesses and causing concerns about rising costs for consumers. They are now urging the government to take action to mitigate the impact of these soaring fuel prices.
Currently, the pump price for petrol has reached a staggering 5430 Ugandan shillings per liter, while diesel prices range from 4999 to 5200 shillings per liter. In the past couple of weeks, fuel prices have been on a steady upward trajectory, causing distress among those in the transport industry.
Many transport operators are feeling the pinch as the cost of fuel eats into their profits. The situation is further exacerbated by passengers who are reluctant to pay higher fares due to the challenging economic conditions prevailing in the country. Additionally, the domino effect of rising fuel prices is being felt by consumers across the board, as the increased transport costs are frequently passed on to them in the form of higher prices for goods and services.
Danel Mushabe, a fuel trader, shed light on some of the contributing factors behind the surge in fuel prices. He pointed to reduced production by oil-producing countries under the Organization of the Petroleum Exporting Countries (OPEC) as a significant factor. Mushabe also emphasized the impact of the dollar's appreciation against the Ugandan shilling, as currency exchange rates play a pivotal role in the country's inflation rate.
In response to these concerns, the state Minister for Mineral Development, Peter Lokeris, expressed the government's optimism that fuel prices will stabilize. He assured the public that there is no shortage of fuel, and measures are being taken to address the situation.
The National Bureau of Statistics recently reported a decline in the inflation rate from 3.9 percent to 3.3 percent. However, with the current surge in fuel prices, experts anticipate that this figure may soon experience an upward revision. The situation remains fluid, and stakeholders in the transport industry are closely monitoring developments while appealing for swift government intervention to alleviate the burden on both operators and consumers alike.
