The Ministry of Energy will not intervene in the skyrocketing fuel price in the country, the assistant commissioner, petroleum supply in the Ministry of Energy, John Friday has said.
John who appeared on local television on Tuesday morning added salt to an injury when he said that price of gas at the pump is relatively ok.
“The prices at the pumps today are relatively okay. The situation has not reached a level where we must intervene,” John said.
His comments come at a time when fuel dealers across the country have dictated own prices by adding almost shs 100 on the litre of fuel daily.
In some parts of the country a litre of petrol costs almost $2 while, while in the capital Kampala, a litre is at shs 6500.
Last year, fuel was half the price at the pump.
John attributes the ever increasing prices to free market economy.
“Uganda is operating in a free and fair market instead of having subsidies. We are focusing on the security of fuel supply, we want the product to be available at each and every outlet and charging competitive prices,” he said.
He added, “oil reserves are there to stabilise supply. We have enough product to keep the country running.”
“The government owns a storage facility in Jinja, 20 million litres for petrol and 10 million litres for diesel.”
Last week, Uganda Revenue Authority faulted fuel dealers for escalating prices.
But to the Ministry of Energy assistant commissioner, the reason why diesel prices have been rising so fast is simple, “the prices globally have gone up because of the post-COVID-19 economies opening. When everybody came back to business it was difficult for consumers to get all the products they needed.”
Energy experts in the country however, disagree with John’s narrative saying fuel dealers are cheating Ugandans at the pump because as a policy, dealers are not supposed to increase prices exceeding shs 200 on a litre.
But in Uganda, for example Total petrol stations have completely different prices.
Whereas Total sells petrol at 6400 shillings in Kampala, the same station sells same petrol at 6900 shillings in the upcountry districts.
