By Aggrey Baba
At a press conference held at the People’s Front for Freedom (PFF) headquarters on Monday, the opposition party challenged President Yoweri Museveni’s government to explain why Ugandans are paying UGX6,874 or even UGX8000 per litre of petrol in some parts of the country, demanding immediate fuel tax cuts and full disclosure of Uganda National Oil Company’s (UNOC) petroleum import deals.
Dr Micheal Lulume Bayiga argued that the high pump prices are deepening the cost-of-living crisis, squeezing motorists, households and businesses that depend on fuel to transport people and goods. He demanded that government bring the price of petrol down, saying the people of Uganda should not continue shouldering heavy fuel costs while the state collects substantial revenue through taxes.
He proposed restoring excise duty to the level that applied in 2021 and claimed that taxes account for about UGX2,700 of every litre of fuel sold. He challenged the government to demonstrate that it is serious about easing the burden on its citizens by reducing the tax component instead of leaving consumers to absorb the rising costs.
But Lulume’s demands also put UNOC’s petroleum business under scrutiny, further calling on the state-owned company to publish the prices at which it imports fuel and the margins at which it sells it to oil marketing companies, arguing that the ordinary Ugandans deserves to know how costs accumulate before fuel reaches the pump.
The PFF leader said transparency around UNOC’s import arrangements would give the people an off ramp to understand what drives fuel prices and whether the state’s participation in the petroleum supply chain is delivering any meaningful relief to consumers.
He also blamed the weakening shilling for pushing up the cost of imported goods, including petroleum products. With fuel imports requiring foreign currency, Lulume argued, pressure on the shilling inevitably feeds into transport costs, production expenses and the prices of goods and services.
Dr Lulume further criticized what he described as excessive commercial borrowing and inadequate investment in productive sectors that can generate foreign exchange. He warned that without stronger domestic production and reliable foreign-exchange earnings, Uganda would remain exposed to currency fluctuations and the resulting increases in import costs.
He also raised concerns about the possible impact of Ebola-related warnings on tourism receipts, arguing that any disruption to visitor arrivals could put further pressure on the country’s foreign-exchange earnings. On this, he put the blame on the president himself, saying he rushed to announce an outbreak of Ebola, without thinking about its repercussion.
Beyond fuel, Lulume demanded that electricity tariffs be reduced to UGX600 per unit and called for government to address load shedding, saying expensive and unreliable electricity adds to the difficulties facing businesses trying to operate and expand. (For comments on this story, get back to us on 0705579994 [WhatsApp line], 0779411734 & 041 4674611 or email us at mulengeranews@gmail.com).
