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Transporters have no justification to increase fares, says govt
Transport fares to some parts of Uganda have started to increase a few days before the festive season. Photo / File
What you need to know:
- Whereas transporters say they increase fares to compensate for low numbers on return journeys, the Energy Ministry says there is no justification for the hike in transport fares because it has done everything possible to reduce the cost of fuel
Energy Minister Ruth Nankabirwa has said that whereas government has done everything possible to bring down the cost of fuel, passengers continue to be exploited by public service vehicles, especially during the festive season.
Speaking in a telephone interview in Kampala on Wednesday, Ms Nankabirwa said her biggest concern right now was that despite the drop in pump prices, public transport fares have skyrocketed, acknowledging that even though the economy is liberalised, something needed to be done because the increase (in transport fares) is not right.
She also wondered why fuel prices on Entebbe Road continue to be high in comparison to others yet all dealers source fuel from the same supplier.
“Why are public service motorists duping people with exorbitant prices during the festive season? That is broad-day thuggery. I have made so many trips to Kenya to negotiate to change the system to allow Uganda to import fuel directly. It's very disheartening to see passengers getting duped. They [transporters] have no justification to increase prices, yet pump prices are going down,” she said.
“I am also concerned about fuel prices along Entebbe Road. They are so high, is it because it's the gateway route?” she wondered, noting that “that [fares charged by public service transporters] must be regulated, I don't know how, but people are being exploited”.
Early this week, Monitor reported that upcountry transport fares had started to increase with transporters saying the adjustment helps them to offset the low number of passengers making return journeys.
Fuel prices have been dropping in the last four months, falling to under Shs5,000 for the first time in over four years since a Covid-19-related surge in 2020 when pump prices peaked at above Shs9,000 in much of Uganda.
The drop has resulted from government’s concerted efforts in which it eliminated middlemen from the fuel import value chain.
Government, through a deal with Uganda National Oil Company and Vitol, has since September taken over importation of fuel products.
However, despite the promise of lower prices resulting from elimination of fuel marketing companies, Uganda remains one of the countries with the highest fuel prices in East Africa.
For instance, Uganda, whose petrol and diesel retails at an average of $1.371 (Shs4,983.7) and $1.289 (Shs4,683.6) per litre, according to GlobalPetrolPrices.com, which tracks prices of fuel in about 150 countries, has the highest prices in East Africa.
Uganda, data shows, is only rivalled by Kenya, Burundi, Tanzania, whose petrol retails at $1.355 (Shs4,925.6), $1.354 (Shs4,921) and $1.241 (Shs4,511.2), respectively.
DR Congo and Rwanda, which retail petrol at $1.052 (3,824.1) and $1.147 (Shs4,169), respectively, have the lowest fuel prices across East Africa.
However, across East Africa, it is only Uganda that doesn’t subsidise or control fuel prices, thus the variance.
Across Africa, Libya and Angola have the petrol lowest prices at $0.031 (Shs1,12.6) and $0.329 (Shs1,195.9), respectively, while the Central African Republic has the most costly petrol, retailing at an average of $1.760 (Shs6,397) per litre, according to GlobalPetrolPrices.com.
Fuel prices across East Africa
Country | Price |
Uganda | $1.371 (Shs4,983.7) |
Kenya | $1.355 (Shs4,925.6) |
Burundi | $1.354 (Shs4,921) |
Tanzania | $1.241 (Shs4,511.2) |
Rwanda | $1.147 (Shs4,169) |
DR Congo | $1.052 (Shs3,824.1) |
However, Ms Nankabirwa said that whereas the prices have not reached where government would want them to be, there has been a substantial drop compared to three months ago.
“Look at where the prices were and now. The principle is that fuel prices have gone down, and they are still going down. Fuel is available on the market after eliminating the middlemen. Most fuel pump prices have gone down except Total and Shell fuel stations, which are still slightly higher than the rest but where they are is not what it used to be,” she said.
