Major players in the fuel industry have eased the pump prices for petrol to less than Shs5,000 per litre for the first time in over a year.
At the weekend, a section of Total Energies stations lowered their petrol pump prices to Shs 4,999.
Pump prices for both petrol and diesel were below Shs5,000 a litre at the other fuel stations.
Mr Solomon Muyita, the spokesperson at the Energy ministry, yesterday attributed the drop in fuel pump prices to a number of reasons, including relaxation in the Covid-19 restrictions and the Russia-Ukraine war.
Factors influencing drop
“…The Russia –Ukraine war has seen discussions held at an international level to ensure continuity of oil production and supply. The drop we are seeing today is an outcome of the efforts put in place,” he said.
The other reason, according to Mr Muyita, is that 4.5 million litres of fuel is now being transported from Kenya via Lake Victoria daily, a move that has reduced the transportation costs to about 50 percent.
“In Uganda, we approximately use 7 million litres of fuel a day, so if we have more than 70 percent of this transported at a cheaper cost, it is definitely going to help us reduce the pump price.”
Last year, fuel prices sky-rocked due to the effects of the Russia-Ukraine conflict, which affected global oil production and supply.
During the war, several oil suppliers ran into a brick wall while Russia that accounts for 13 percent of the global oil supply was blacklisted, which created a worldwide shortage especially in countries that relied on Russia.
Between August and November last year, a litre of petrol was traded at Shs6,500 to Shs10, 000 while diesel prices were in the same range depending on the location.
By press time yesterday, Total Gayaza Road located just after Kalerwe Market, was selling a litre of petrol and diesel at a uniform price of Shs4,999 while Shell Mulago sold petrol at 5,020 and diesel at Shs4,995.
Efforts to get a comment from the Total Energies were in vain as this reporter’s calls and messages went unanswered by press time.
Mr Valery Okecho, the spokesperson of Vivo Energies, said: “I am currently out of office on leave, share formal inquiry for a more guided response,”
But by press time, he had not responded.
Mr Owen Makisumu, a boda boda rider on Sixth Street Industrial Area, in Kampala said he had not noticed changes at the pump.
He said: “I’m not seeing any serious change in the fuel prices because the prices of all other essential commodities are still very high. So we are not saving because still the money is used to buy other essentials.”
Mr Kasim Masaba, a truck driver in Namuwongo, said: “Today we buy diesel at a price slightly higher than Petrol at some fuel stations. We are just waiting for oil production to start in Uganda so that we are saved from importation excuses.”
Mr Adam Ssejjoba, a boda boda rider in Kabalagala, a city suburb, said: “We used to buy fuel as low as Shs3, 200, therefore, I cannot understand what you mean by the current reduction in the prices.”
Story Credit: Daily Monitor