Business and Finance
Diesel, kerosene prices rise
Fuel prices have increased three times in the last three weeks, despite the government’s earlier position that by this time, the cost of the much-needed imports would have not only stabilised but also dropped.
By last evening, most filling stations in Kampala had increased rather than relax the fuel prices as earlier anticipated.
The leading filling stations like Shell (Vivo) was by yesterday selling a litre of diesel at Shs3,600 up from Shs3,500, while Total was also quoting the same prices. The biggest increase was on the price of paraffin (Kerosene), from Shs2,800 to Shs3,000. Petrol prices at some stations, particularly Total, was trading at Shs3,980 from Shs3,900.
Mr Ivan Kyayonka, the Shell Uganda country manager, referred to the changes as the price adjustment to the anxiety that surrounded the region when Kenya went to the polls last week. This, he said, forced many players to resort to the Southern route (Tanzania) which is expensive compared to the regular northern route (through Kenya).
“We have had to bring in 50 per cent of our products through the Dar es Salaam route and this is responsible for the push up in the pump price for Kerosene and diesel,” Mr Kyayonka told the Daily Monitor yesterday.
But the biggest factor, according to the association of local dealers, is that there are no reserves to see the country through in case of any emergency.
“We have been asking the government to show us the fuel reserves but we have not seen them,” the chairperson of the Petroleum Dealers Association, Mr Rajni Tailor, told the Daily Monitor.