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No light at tunnel’s end in fuel crisis

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By Dorothy Nakaweesi & Yusuf Muziransa  (email the author)
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Posted  Friday, September 17  2010 at  00:00

Kampala

Fuel scarcity in Uganda and the region continues to bite as consumers pounce on every litre ferried into the country.

Most stations have completely run out of petroleum, pushing motorists to resort to public means. “Our only ray of hope; a 200,000 litre consignment is being ferried into the country. This is the only fuel we expect this week until the repairs are done,” said Mr Peter Ochieng, Kobil’s marketing and operations manager.

Experts say the situation is not any better in neighboring Kenya, which has also run out of petrol.
The repairs on the Mombasa fuel jetty, which started early this month—thereby causing fuel shortage because ships could not dock—is expected to be complete by either today (Friday) or tomorrow (Saturday).
“Ships are expected to start discharging fuel over the weekend or early next week,” Mr Ochieng said.

Govt responds
Apparently, Uganda consumes three million litres of petrol daily. Giving the government’s position, Information Minister Kabakumba Masiko yesterday told journalists in Kampala that Uganda expects a total of 600,000 litres—which is in transit. Ever since the country started experiencing the shortage, petrol pump prices have sky-rocketed from Shs2, 950-Shs3,500 a litre.

Ironically, the fuel price rise in Uganda is happening at a time when international fuel prices are heading down, dropping by $1 in the last three days to $75 a barrel. Rev. Frank Tukwasibe, a commissioner for petroleum, warned filling stations against hoarding fuel in times of scarcity.

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“If anyone knows a company that is keeping fuel in stock instead of selling it, report that company and we shall intervene,” he said. But Total Uganda’s Managing Director Mamadou Ngom said the prices are determined by the demand-supply forces and the stock effect. “The fuel we are selling now was procured in June/July when the international prices were higher. We have to factor in this cost incurred then,” he said.

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