Fuel Price Spike: Ugandans On There Own As Govt Takes A Back Seat

Last week, the Speaker of Parliament, Anita Among, put the Government to task over the escalating fuel price. However, a statement by Okaasai Sidronius Opolot, the state Minister for Energy seems to suggest government will continue with its non-interference approach on commodity prices.

“Uganda operates a liberalized downstream petroleum market, where pump prices are determined by the forces of demand and supply as guided by the Petroleum Supply Act of 2003 and Petroleum Supply General Regulations (2009) with amendments of 2012 and 2018,” Okaasai said during plenary on Tuesday, September 5, 2023.

Global factors beyond Uganda’s making, he said, are behind the spike. There is, therefore, not much his ministry can do. This statement left MPs rattling.

“The surge in global oil demand to record levels, especially during the summer season in Europe and the United States, has put immense pressure on oil prices. Thus, high demand, driven by seasonal factors and increased economic activity. This has contributed significantly to the recent spike in fuel prices worldwide,” he said.

Enraged, Hon. Ibrahim Ssemujju (FDC, Kira Municipality) asked the minister about the much-talked-about fuel reserves. He said, short of solutions, Parliament should not entertain the statement.

“He [Minister Okaasai] should come here and tell us what happened to the reserves, short of which, I move a motion without notice for Parliament to reject the statement,” he said.

The Speaker of Parliament, Anita Among, who chaired the sitting, asked the government to develop a tangible plan to scout around the hikes in prices.

This is instead of folding hands and allowing market forces to determine what happens to Ugandans.

“The fuel prices have gone up; what is the government’s immediate, medium-, and long-term plan to address the escalating prices? she asked.

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