Parliament tasks govt on fuel reserves
A motorist fuels at a Total fuel station in Kampala last week. PHOTO / FRANK BAGUMA
What you need to know:
- The Finance ministry officials were appearing before the committee, where, according to the House reports, they presented their Budget Framework Paper for financial year 2022/23 seeking Shs15.4 trillion for treasury operations.
Members of Parliament yesterday grilled officials from the Ministry of Finance about the prevailing fuel crisis in the country that has seen prices shoot up, questioning the country’s capacity to withstand such emergencies.
According to the MPs, the crisis said to have been birthed by a protest by truck drivers against mandatory Covid-19 testing, would have been averted if the country’s oil reserves were routinely filled.
Pump prices have skyrocketed with a litre of petrol retailing between Shs5,000 and Shs10,000, up from Shs4,500 within a week. Dealers say such prices may last for close to a fortnight even after the trucks start coming in.
Mr Keefa Kiwanuka, the chairperson of the Parliament’s Finance Committee, said one of the officials from Uganda National Oil Company, which runs Uganda’s fuel reserves, had revealed to the Committee that the country’s oil reserves are empty.
The Minister of State for Planning, Mr Amos Lugoloobi, who termed the crisis as a “disruption,” told the Committee that the crisis would be over as soon as the stalemate at the border is resolved.
However, the MPs wondered what would become of the country if the situation persisted for long
“Our concern isn’t just about the disruption. It is the country’s preparedness to handle a crisis for just a few days. What if the crisis went on for months? Why are we failing to handle the oil reserves so that in future we do not have such a crisis?”Mr Anthony Akol (Kilak North) said.
The Mbale Industrial Division MP, Mr Karim Masaba, said: “The economy is partially open but the fuel prices are shooting up. In other places, fuel goes for Shs6,000 to Shs7,000 and in the oil city [Hoima] things are worse. This is because the Ministry of Finance has not prioritised filling up its oil reserves and we are now feeling the effect of high fuel prices.”
The Finance ministry officials were appearing before the committee, where, according to the House reports, they presented their Budget Framework Paper for financial year 2022/23 seeking Shs15.4 trillion for treasury operations.
Parliament reported that the Secretary to the Treasury, Mr Ramathan Ggoobi, said under funding was constraining government’s commitment to fully operationalise the oil and gas sector.
“As a budgeting ministry, we want oil out of the ground but we are constrained with time, resources and physical space to do everything. We stated clearly that our intention was to increase allocation remittances and to define priorities,” he said adding “our overall priorities are to kick start the full monetisation of the economy by encouraging every Ugandan to be part of the economy.”
He appealed to Parliament to help the Finance Ministry to re-purpose and realign budgetary priorities to ensure that all votes are budgeted in such a way that their activities are achievable.
Mr Muwanga Kivumbi (Butambala) criticised Finance for failing to align the country’s priorities.
“As a leading ministry, how can you fail to budget for the oil sector which is a key game changer in the economy? You are waiting to come to Parliament at any given time with a supplementary to blackmail us. Oil is a priority and you have not funded it. Are we serious about oil?
