Uganda rules out fuel subsidy as pump price jumps 19%

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

Lawrence Baraza is a dynamic journalist currently overseeing content at Metropol TV Digital. With a keen focus on business news and analytics, Lawrence guides the platform in delivering insightful, data-driven content that empowers its audience to make informed decisions. Lawrence’s commitment to quality and his ability to anticipate market trends make him a key figure in the digital media landscape. His work continues to shape the way business news is consumed, making a significant impact in the field.

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