Museveni to punish businessmen hiking fuel prices. President Yoweri Museveni has called for a second cabinet meeting to find a lasting solution to fuel companies that have deliberately refused to lower their hiked prices.

On Monday, during the first meeting, the Minister for Energy and Mineral Development Ruth Nankabirwa informed the cabinet that fuel prices were hiked because of the covid-19 restrictions which were put up by the Ministry of Health.

Nankabirwa had earlier revealed that the restrictions had barred drivers of fuel trucks from entering the country without being tested again at the border. She promised the cabinet that since drivers were allowed to present their covid-19 test from Kenya, trucks had started moving into Uganda and soon prices would go down. “I have been informed that some trucks have started entering the country so this problem will soon get over.”

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However, on Tuesday, Jan 18, 2022, prices were still extremely high, an issue which has prompted President Museveni to call for an urgent cabinet meeting.

Speaking to the media, Minister Nankabirwa said that one of the agendas for the meeting called by the President is to find a solution in form of punishment or a penalty to fuel companies that have taken advantage of the situation to hike fuel prices.

“The ministry has already deployed a team of inspectors to monitor those fuel companies that are still having high prices yet on the international market prices have not changed at all. We discussed this same issue in the cabinet, but today we are finalizing it.”

“Such companies must lower prices immediately because at the international markets prices are still stable, this is unacceptable. I’m now thinking of coming up with an amendment in the Petroleum Supply Act to see that this commodity called ‘fuel,’ prices are determined by the government despite the fact that we are in a free market economy. We need to prevent such things from happening again because fuel is one of the bearings that drive the economy,” she added.

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I’m very sure we are going to come out with a proper and balanced solution for this problem. I’m promising Ugandans that today we are solving this issue completely, Nankabirwa noted.

Currently, a litre of petrol costs between Shs5000 and Shs10,000.

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Prime Minister Robinah Nabbanja has reassured the public that there is no crisis of fuel in the country and also discouraged hoarding of petroleum products by businessmen and women, which has led to an unnecessary hike in fuel prices.

“The scanner at Busia border got an accident but it was replaced with a mobile scanner shortly and tankers are moving smoothly and therefore I want to request fellow Ugandans especially businessmen and women that it is not necessary for any fuel station to increase fuel prices. It is not necessary,” Nabanjja said.

By yesterday afternoon some fueling stations had abnormally hiked a cost of petrol at UGx; 10,000 per liter and others averagely selling it between 7,000 to 8,000 Ugandan shillings.

According to the Ministry of Energy and Mineral Development, supply was normal when drivers were being allowed to present negative COVID-19 results from Kenya until 1^st January 2022, when a directive was issued by the government of Uganda requiring all truck drivers to undergo testing at Malaba and Busia entry points due to the third wave of Omicron varriant.

The ministry says that the price of Petrol in the country should not exceed UGX. 5,000 per litre and that the cases of scarcity in districts such as Hoima will be addressed shortly with the ongoing replenishment.

Solomon Muyita the Principal Communications & PR Specialist at the ministry said; It is known that trucks had spent about 10 days in the queue where none was crossing the border hence affecting and reducing stocks for Petroleum products in the country. However, on 12^th January 2022, the Ministry of Health commenced free COVID-19 testing for the truck drivers at the Malaba and Busia border points and the problem of fuel shortage will soon be dealt with since the turnaround time for trucks has started improving.

“Uganda’s Oil Marketing Companies have most of their trucks in the traffic between the Kenya loading points and the borders, and once cleared in a few days, supply and prices will return to normal, and there is no need for the public to panic. Our reservoirs are up and working and Uganda National Oil Company (UNOC) is actually making big improvements on them to ensure consistent availability of stocks in the reservoirs.”

Government has also revealed that, with the full opening of economic activities, there has been an increase in uptake of Petroleum Products, which saw a spike in the country’s consumption that affected the 10-day stock levels resulting in some stock out of Petrol at some gas outlets and that everything possible is being done to prioritize the handling of Petroleum Products at the borders to ensure build up in-stock levels in the country.

Uganda is a net importer of petroleum products in a liberalized downstream petroleum market with an average current daily consumption of 6.5 million liters. The country loads its products through the terminals located in Eldoret, Kisumu, Nairobi and Mombasa, and supply is majorly through road transport.

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