Fuel prices could rise further

The country could realize a sharp rise in the prices of fuel if Uganda National Bureau of Standards goes ahead to implement its proposal to increase the fuel marking fees. According to the standards body, the current fee of 5 shillings per liter is too little given the current inflation rate. Meanwhile fuel adulteration has reduced to 4% this year compared to 30% in 2009 which the standards regulatory body attributes to compliancy among petroleum dealers.

Fuel dealers may experience a hitch as Uganda National Bureau of Standards reveals plans to hike the marking fee citing inflation. Currently the standards body is charging 5 shillings as marking fee per liter of petroleum products, a fee it says is too little compared to the current exchange rate. Currently petrol is selling at 3,900, diesel at 3,500 but prices are likely to go higher if the marking fee is hiked.

Though UNBS has registered a stable improvement in reducing fuel adulteration, many petroleum dealers are taking advantage of the tax levy on kerosene to make extra profits by mixing it with other products.

Meanwhile petroleum dealers have been advised to use other alternative transportation routes other than relying on the Kenyan pipe line to avoid incuberances that could result into fuel shortage.

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