Taxi operators, riders decry high fuel prices

KABAROLE. A section of boda boda riders and taxi operators in Fort Portal Town have expressed concern over the high fuel prices.
They claim the prices of fuel have remained high since January.
In addition, drivers argue that fuel stations in the area should have uniform prices since fuel companies import from the same source and are levied the same taxes.
Because of the high prices of fuel, transport fares have increased.
On Wednesday at Total petrol station, a litre of fuel was being sold at Shs4,230 and diesel Shs3,920. At Kobil petrol station, a litre of fuel went for Shs4,100, and diesel Shs3,790 while at Shell petrol station, a litre of fuel was sold at Shs4,250 and diesel Shs 3,930.
Early this year, travelling from Fort Portal to Mbarara District by taxi was Shs20,000 but the fare increased to Shs25,000 since June.
Transport costs from Fort portal to Kasese have increased from Shs5,000 to Shs7,000.
During the stakeholders’ meeting in Fort Portal on Wednesday organised by the ministry of Energy and Mineral Development and Uganda National Bureau of Standards, the taxi operators questioned the ministry on why the prices have remained high.
Mr James Baguma, a taxi driver, said towards the festive season, the fuel prices go up thus affecting the transport sector.
“We are forced to move around town to look for stations that have cheap fuel in order for us to run our business,” Mr Stephen Mugume, a boda boda rider, said.
The commissioner Petroleum Supply department, Mr Justaf Frank Tukwasibwe, attributed the high prices to increasing public demand.
Mr Tukwasibwe said since 2009, the country has never experienced shortage of fuel supply. “It is true the fuel prices are high in some of the fuel companies but it is not beyond. The reason why some are selling it cheaply and others high is because of the liberalised economy where forces of demand and supply determine prices,” Mr Tukwasibwe said.

Operational costs
Mr Tukwasibwe also said the high pump prices are a result of the different operational costs of companies.
According to Mr Tukwasibe, government taxes a litre of petrol at Shs1,200, diesel at Shs880 and Shs200 for Kerosene.
Mr Noel Twinomujuni, an economics lecturer at Uganda Pentecostal University, said the increase in fuel prices will result in high expenditure.
“The Uganda economy depends largely on agriculture but if you’re going to buy one litre of petrol; you will need to sell more than 10kgs of maize,” Mr Twinomujuni reasoned.
The Kabaudaire Market chairperson, Mr Fred Kasoke, said due to high fuel prices one box of tomatoes which was at Shs50,000 is now Shs70,000.

Stations

By October there were 2,808 pump stations in Uganda with the Central region topping at 917 stations, South western 519, Western 502, Eastern 366 and Northern with 304.