The Permanent Secretary in the Ministry of Finance, Planning and Economic Development, Mr Ramathan Ggoobi, has said the rise in fuel prices is temporary and will soon go back to normal.
Motorists are digging deeper into their pockets following an increment in fuel prices countrywide, with a litre of petrol crossing the Shs5,000 mark.
But according to Ggoobi, the current spike has caused by administrative decisions to control the spread of COVID-19.
“Fellow Ugandans, the current spike in fuel prices has nothing to do with economics. It was caused by a temporary exogenous shock caused by administrative decisions to control the spread of Covid-19 here and globally. The responsible parties are addressing them. Soon prices settle,” he said on Sunday.
Soon the fuel prices will settle back to market-clearing equilibrium, he added.
The Energy ministry on Friday released a statement on the escalating fuel prices and the supply disruptions at Malaba and Busia border points.
The statement indicates that the supply was normal, with trucks being cleared as usual and drivers were allowed to present negative Covid-19 results from Kenya and this resulted into build-up of trucks as none were entering the country.
“As of January 12, the Ministry of Health commenced free Covid-19 testing at Malaba and Busia border points. The trucks started moving and the pace of truck movement started improving. Speculators hoarding petroleum products and leading to unnecessary hike in fuel prices are advised to desist from this bad practice. The price of petrol in the country should not exceed Shs5,000 per litre,” the statement reads in part.