Government increased the fuel tax per litre of petrol and diesel by Ugshs100 for the financial year 2021/22 as a means to increase its revenue by an additional Ugshs196 billion. But all fuel stations have maintained the old prices of the last one month.
Osman Mood, the manager of Hass fuel station located at Katanga (Kubiri), said his company last adjusted the pump fuel prices in the month of April 2021. Petrol rose from 3,650 to 3,750 Shillings per litre and diesel prices were adjusted from Ugshs 3,330 to UgShs per litre.
‘’It was not automatic that the fuel prices would increase with the Ugshs 100 tax added on the already existing tax as there are many factors that determine the fuel prices, ‘’ said Mood.
John Irumba, the manager of Oryx fuel station along Sir Apollo Kaggwa, said the station last changed prices in May 2021 though he was hesitant to tell why they had to adjust prices at that time.
Irumba indicated that apart from the influence of the international fuel prices, it is always the competitiveness within a given location in the sector that leads to price determination in a given area.
‘’We last adjusted our fuel prices in late May, the price of petrol was increased from 3,920 to 3,990 Shillings per litre while for diesel the price went from 3,490 to 3,550 Shillings per litre,’’ Irumba said.
Irumba explained that the station, on average, sells 500 litres a day, but that sales have since been affected by the Covid-19 lockdown and plummeted to 300 litres per day.
At Oil Com, another fuel station along Sir Apollo Kaggwa road, the station supervisor who was hesitant to tell his name, noted that different factors determine prices and the Ugshs 100 tax will not affect the pump price as per now.
Here, the price of petrol was Ugshs 3,880 per litre while diesel cost UgShs 3,390 per litre.
Shell petrol stations at Tula, Komamboga, Gayaza road and Kalerwe had all reduced from Ugshs 4,020 per litre of petrol to Ugshs 3,960 per litre.
The other factor that influences fuel prices is demand, and this has been low for a period of time due to the covid-19 pandemic that led to a ban on vehicle movement.
According to Rev. Frank Tukwasibwe, the commissioner Petroleum supply department in the ministry of energy, Covid-19 has greatly impacted the demand for fuel.
He says that before the lockdown the total fuel consumption per month was at 185 million litres which has now reduced way below that. URN