Fuel, telecom companies maintain old prices despite new taxes levied by govt

Fuel stations and telecom companies have maintained fuel and data charges despite the government levying new taxes on their products in the new financial year.

A mini survey conducted by this website last week across Kampala and Wakiso districts found that all fuel companies have maintained the oil prices of fuel.

The petrol pump price for Shell and Total petrol stations is trading at around Shs4,050 while diesel is at Shs3,630. However, other fuel stations like ORYX, Petrocity and Stabex sell fuel at between Shs3,700 and Shs3,990 per litre while diesel is around Shs3,550.

“It is not automatic that the fuel prices would increase with the Shs100 tax added on the already existing tax as there are many factors that determine the fuel prices,” Osman Mood, the manager of Hass fuel station located at Katanga Kubiri in Kampala, said,

The new fuel tax of Shs100 per litre took effect on Thursday, July 1, a means to increase government revenue by Shs196 billion.

John Irumba, the manager of Oryx fuel station along Sir Apollo Kaggwa, says due to the lockdown that has affected their sales, it would not be fair to increase fuel prices at this time to include the new tax.

Telecoms have also said they will not move to levy the 12 per cent tax on data until when they have reached a proper assessment of the impact of the new tax on data prices. 

Ms Rhona Arinaitwe, the MTN senior manager communications, says they were still assessing the impact of the tax, and will have to wait for an informed decision.

Amit Kapur, the Airtel chief commercial officer, says the telecom will maintain its pre-paid data prices despite the 12 per cent level, which took effect yesterday.  

 “We shall institutionalise the 12 per Excise Duty as mandated by government,” he said, adding: “However, Airtel will absorb the Duty for all pre-paid packs, thus maintaining our pre-paid data prices until further notice.” 

Government early this year made a decision to scrap the Shs200 Over-The-Top (OTT) tax and replace it with 12 per cent Excise Duty that would be charged directly on data.