Motorists are bracing for tougher times ahead after the price of diesel surpassed that of petrol across Uganda, a survey shows.
According to a survey conducted by this website in Kampala City, diesel at Total fuel station is selling at Shs5,340 while petrol is selling at Shs5, 310. For Shell, petrol is selling at Shs5,310 while diesel is being sold at Shs5,300.
Experts have urged government to remove the excise duty levied on fuel to bring down the prices.
During the 2021/2022 financial year, the government increased excise duty on fuel from Shs1,350 to Shs1,450 per litre of petrol. The tax on diesel rose from Shs1,030 to Shs1,130 per litre.
Mr Henry Kimera, a consumer advocate, said the only way out is for the government to revise its fiscal policy and slash the taxes on the fuel and reduce expenditures on other sectors, which do not directly affect the economy.
This comes after taxi and bus operators said they are increasing transport fares citing high fuel prices.
Mr Robert Mutebi, the secretary of the United Bus Owners’ Association (UBOA), said they have called for a meeting on Tuesday to discuss the amount that will be topped up on the current fares.
“We don’t have a choice but we have to increase the prices because we already know what this means to the business. In our meeting, we shall be setting new prices because the government has refused to listen to our repeated call for them to work on the issue,” Mr Mutebi said.
Fuel prices began rising in July 2021 from Shs3,700 for petrol and Shs3,200 for diesel. By December 2021, a litre of petrol cost Shs4,580 yet demand was low due to restrictions in certain sectors of the economy. Between June 2021 and March 2022, fuel prices in Uganda have gone up by more than Shs1,000.