Barely a fortnight after fuel prices in Uganda crossed the Ush6,000 ($1.61) mark per litre for petrol or diesel, the government says it has no solutions for price cuts at the pump even as they spiral out of reach for motorists, on account of global dynamics in eastern Europe.
There are also fears that next month’s Kenyan General Election could disrupt supplies.
“We go by what is prevailing on the world market,” said Rev Frank Tukwasibwe, commissioner for petroleum supply in Uganda’s Ministry of Energy. Even as the war between Russia and Ukraine that triggered a spike in global crude prices enters its fifth month, this week crude prices tumbled, giving some optimism that there could be a downstream ripple effect internationally.
But industry players remain cautious saying that while a dip in crude oil prices is good, motorists in East Africa will continue to feel the pinch of high prices at the pump until mid-August, should prices continue to fall.
“I am starting to see some good news regarding the price of crude oil,” said Boniface Kipchirchir, head of operations at Stabex International Uganda. “We expect prices to come down and stabilise perhaps next month. But the Kenya elections might disrupt supplies to Uganda, even when the prices have stabilised.”
On July 5, Brent Crude traded below $100 per barrel for the first time in three months but climbed back above $100, while the West Texas Intermediate, the US benchmark, dropped to 98.53 on July 6.
