A man fuels a car at a petrol station in Kampala. PHOTO/COURTESY

Taxi drivers and car owners have expressed concern over the rising prices of petrol and diesel.

Over the last two weeks, petrol and diesel pump prices have shot up by about Shs300, from about Shs3980 to now about Shs4,450 per litre.

The same trend occurred in April 2021 when petrol pump price shot from Shs4050 from about Shs4,180, and diesel went to Shs3710 from Shs3630.

Stakeholders and dealers attribute the hike to effects of COVID-19 on the supply chain, the resurgence of the global demand and new tax regimes in East Africa.

Vivo Energy marketing manager Moses Kebba attributes the price increases to taxes imposed by the government and the global effects of COVID-19 on different sectors.

Frank Tukwasibwe, the commissioner for petroleum distribution says that currently, the country is enjoying a stable supply, implying the causes are external.

Mr Peter Onasis Ochieng, an industry expert with a wealth of experience on EAC fuel market, says as long as Uganda and the regional countries continues to rely on imported refined petroleum products, including petrol and diesel, time and again they will have to contend with the hike in pump prices.

Until a cheaper means of transport has been found, the cost of transporting fuel from the port of Mombasa in Kenya or from port of Tanga in Tanzania, will continue to influence the cost of pump price.

Mr Ochieng, also a regional market analyst, notes that exchange rate factor plays a huge role in determining pump price. With erratic shilling fluctuation, especially when it depreciates, the knock on effect will see the prices of fuel edge upwards.