Uganda rules out fuel subsidy as pump price jumps 19%

Uganda goes into another lockdown as COVID-19 cases surge

Uganda won’t introduce fuel subsidies, said interim director at Finance Ministry Moses Kaggwa, even after pump prices spiked following supply disruptions.

The disruption has been caused by Russia’s invasion of Ukraine.

Subsidies and fuel tax rebates would cost the government much-needed revenue and increase the need to borrow, said Kaggwa on Thursday.

The country’s Treasury receives Ush.1,450 (Ksh. 46.68) from every liter of petrol, he said.

Ugandans consume 6.5 million liters of fuel daily. The country is East Africa’s third largest economy, according to Bloomberg.

According to Kaggwa, Uganda is investing in oil infrastructure projects to enable the country to start pumping crude in 2025.

Many had hoped President Yoweri Museveni would announce fuel cuts and other relief measures during the Labour Day celebrations.

Instead, the president used the occasion to rally Ugandans to substitute imports with locally produced goods to hedge against imported inflation.

“If there is no bread eat muwogo (cassava),” said President Museveni. “Africans really confuse themselves. If you’re complaining that there’s no bread or wheat, please eat muwogo. I don’t eat bread myself,” Museveni told Ugandans.

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Lawrence Baraza is a prolific writer with competencies in Digital Media, Print, and Broadcast. Baraza is also a Communication Practitioner currently spearheading Digital content on Metropol TV's Digital Desk.

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