Fuel imports rise by 18%, force drop in pump prices
What you need to know:
- The increase, which was mainly registered in petrol and kerosene imports, URA says, “partly explains why we are seeing a drop in the pump prices now”
Fuel imports increased in the first quarter of the 2022/23 financial years, according to Uganda Revenue Authority.
The increase, which was mainly registered in petrol and kerosene imports, URA said: “Partly explains why we are seeing a drop in the pump prices now”.
In details contained in the Revenue Performance Brief for the period between July and September, URA noted there were notable increases in volumes of petrol and kerosene while diesel registered a drop.
For instance, the brief noted, volumes of fuel import increased by 18.06 percent to 88.41 million litres compared to the same period last financial year boosted by petrol and kerosene, which increased by 33.34 percent and 20.73 percent, respectively.
During the period, 71.56 million litres of petrol and 2.20 million litres kerosene were shipped into the country.
However, diesel saw import volumes reduce to 5.8 million litres, representing a percentage decline of 2.39 percent.
The increase, URA said, was a significant boost to revenue collection, in which a surplus of Shs45.7b was collected from petroleum duty.
In August, the Central Bank reported that the rising international crude prices had resulted in demand for more dollars with dealers spending more than double of what they had been spending in the same period last year.
For instance, Bank of Uganda indicated as of June 30, money spent on petroleum imports had increased by 52 percent compared to the same period in the last financial year.
Dr Adam Mugume, the Bank of Uganda director research, told Monitor then that Uganda was now spending more dollars for the same volume of oil related imports.
“First, the price increases of imported goods, including oils, which have no immediate substitute means that Uganda is paying more for the same quantity of imported oils. For instance, the value of fuel imports increased by 52 percent in 2021/22,” he said.
The increase in fuel imports is welcome relief to consumers who, for almost a year now, have shouldered the burden of increased pump prices.
Movement of fuel prices
According to Uganda Bureau of Statistics petroleum related products, among them petrol, diesel and kerosene, had been increasing since November last year, peaking in June before stagnating in July and eventually reducing in August.
In June, Ubos data indicated fuel prices had increased by more than 40 percent, reporting a marked reduction in consumption.
However, they have since reduced, dropping by an average of Shs1,000.
By close of yesterday a litre of petrol was selling at an average of Shs5,500 while diesel was selling for an average of Shs5,380.