Legislators have blamed government particularly the Ministry of Finance for what they called poor economic planning which has led to the hikes in fuel prices.
The accusations came up while legislators debated the response by the Minister of Energy, Eng Irene Muloni on the pump prices of petroleum products in the country an issue that was raised by Kampala Central MP, Mohammed Nsereko.
The Minister explained that Uganda being landlocked and a net importer of refined petroleum products, pump prices are a function of the fixed logistical costs which include port handling fees, transit handling charges, storage fees, transportation, taxes, clearing and marking fees.
Muloni said that the combination of the logistical costs together with the cost of the imported products which increased as a result of increased refinery premiums in the Open Tender System since September 2017 have resulted in the increased pump prices.
“On the supply side, we have had stable import of petroleum products in the country irrespective of the current infrastructural developments in the Kenya Pipeline Company where the new Mombasa – Nairobi pipeline is undergoing wet testing,” Minister Muloni told MPs on Tuesday.
She gave assurance that the fuel prices will go down when global prices go down.
Today, a litre of petrol costs between Shs 3,720 and Shs 4,000 at different fuel stations, with fears that the prices might shoot high by day break tomorrow.
The Minister’s explanation faced a lot of resistance from the members who blamed her for failing to offer a solution to the situation at hand.
“I don’t know why we are ‘roasting’ the Energy Minister yet all these questions about electricity and fuel prices are about the economic planning, which would mean there is no planning in the Ministry of Finance,” reacted Ibanda North County MP, David Guma Gumisiriza during the plenary.
Kitgum Municipality MP, Beatrice Anywar wondered why when fuel prices go up on the world market, the local prices similarly get hike yet when the global prices ease, the trend remains stagnant in Uganda.
“Who is regulating the price shifts?” Anywar asked.
While the Energy Minister clarified that the Jinja storage petroleum reserves underwent rehabilitation and stock ups, she noted that the said reserves are not meant to stabilize prices but rather for fuel supply security.