Finance Ministry will not subsidise Fuel

The Ministry of Finance has no plans to introduce fuel subsidies after fuel prices continue to go up in the country following disruptions partly caused by the Covid-19 pandemic and the unrests between Russia and Ukraine.

This follows a 19% record high increment in the price of fuel. The prices now average between UGX 5000 and UGX 5300 per liter.

The acting Director Economic Affairs at the ministry, Moses Kaggwa said Thursday that rolling out of fuel subsidies would cost the government huge sums of money and in turn increase the need to borrow. ” The treasury receives UGX 1,450 from every liter of gasoline.” he said

The country uses about 650 million liters of petroleum fuel daily. The ministry said will permit competition amongst dealers and will only intervene if there are ‘abnormal margins’ in the industry.

The increase in fuel prices has seen the cost of production for manufacturers, transport, food items shoot through the roof.

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