Fuel prices shoot up to Shs3,900

KAMPALA.

Ugandans should brace themselves for a costly living as the weak Shilling pushes up the prices of fuel.
The Shilling, which is trading in the regions of 3,500 against the dollar, has forced operators to adjust the pump prices upwards.

Currently, one has to part away with between Shs3,850 and 3,900 to buy a litre of Petrol, up from 3,700 it traded at the beginning of July.

In an interview with Daily Monitor, the Vivo Energy retail and lubricants manager, Mr Edward Walugembe said: “Despite the trends happening to the Shilling that has seen it weaken, this has not affected Vivo Energy’s pump prices. Our prices have not changed for the last three weeks.”

Experts also attribute the rise in fuel prices to government’s Shs50 tax increment on fuel declared in the 201516 national Budget.

Furthermore, with the Shilling hitting the 3,500 mark, commodity prices are likely to move higher as the market continues to witness a surge in demand from importers and financial institutions.

“Market remains tight on flows there seems to be no relief in sight. Expectation of portfolio flows targeting the Treasury Bill auction on Wednesday did not have any significance to reverse the trend,” said Mr Stephen Kaboyo, the managing director Alpha Capital.
The Shilling has lost more than 27 per cent since the beginning of the year

dnakaweesi@ug.nationmedia.com