Grapevine

Government projects uniform fuel prices by December

Government has said it expects fuel prices to be uniform or have slight variances in about three months, a key discussion point since government took over as the sole importer and supplier of oil products.

Responding to Monitor inquiries regarding the slow reduction in fuel costs among big brands and price variances yet the products are sourced from a single supplier, Energy State Minister Sidronius Okaasai Opolot, said many of the big operators had stocked fuel before government took over the role, noting that after the stocks have been exhausted in about three months, pump prices will almost be uniform or have small variances.

“Give it three months and the impact will be realized across the board. The small ones will be able to compete. Maybe there will be a small variance in prices because of brand and operational costs but it won't be as big as it has been,” he said.

However, he noted, price reductions among small operators had been registered, even as big operators such as Shell and Total E&P still price petrol at an average of Shs5,185, while diesel is priced at Shs4,950.

Mr Tony Otoa, the Uganda National Oil Company (UNOC) chief corporate affairs officer, on Tuesday said the cost of fuel products among small dealers had dropped to Shs5,000 and Shs4,600 or below for petrol and diesel, respectively since June when government became the sole importer and supplier.