Why Fuel Prices Are Rising

Why Fuel Prices Are Rising

For the past few days, some Ugandans have noticed a slight rise in petrol prices at the pumps.

At Shell and Total outlets, a litre of petrol has increased to between5050 to sh5090 and increase from about 4050 on average.

The Uganda National Oil Company (UNOC) says this is due to temporary logistical issues affecting fuel deliveries through Kenya earlier this month.

In a statement, UNOC explained that supply chain disruptions along the Kenyan route caused minor shortages in some parts of the country.

To keep fuel flowing, the company rerouted about 35 million litres of petroleum products through Tanzania. While this ensured continued availability, the longer distance came with higher transport costs, which partly explains the recent price uptick.

As of Sunday, more than 90 million litres of fuel were already in the pipeline system in Kenya, earmarked for Ugandan oil marketing companies (OMCs). Of that, 53 million litres was petrol being loaded for delivery to Uganda.

Starting Wednesday, another 200 million litres — including petrol, diesel, and jet fuel — will enter the system over a three-day period.

UNOC says this should bring relief to consumers who’ve seen small but noticeable increases at the pump. The company also pointed out that falling global Platts prices and a stronger local currency are expected to help stabilize prices soon.

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