Gov’t urges patience on fuel price reduction as stock clearance continues

The Ugandan government has called on consumers to exercise patience regarding the anticipated reduction in fuel prices, following the state’s takeover of petroleum imports and supply.

Despite initial promises of lower fuel costs, prices have remained above Shs5,000 per liter, leading to public frustration.

State Minister for Energy Okaasai Opolot reassured consumers that the impact of the government’s involvement will be felt within the next three months.

“Give it three months, and the impact will be realized across the board,” Opolot said, emphasizing that the delay is due to large operators clearing their old fuel stocks, purchased before the Uganda National Oil Company (UNOC) took over as the sole importer.

According to Minister Opolot, once these stocks are depleted, fuel prices are expected to stabilize, with smaller variances between pump prices.

“Right now, companies are still clearing the old stock, and we have to accept this lapse so that people don’t lose the money they invested,” he explained.

While the government cannot set a fixed price for fuel due to fluctuating international market conditions, the removal of intermediaries is expected to create more favorable pricing. Opolot emphasized that uniform supply to all oil marketing companies will lead to greater competition, particularly benefiting smaller companies.

“If we are supplying all oil marketing companies, it means we are supplying uniform products. I want to remove the notion that small companies are selling poor-quality products,” the minister added, expressing confidence that increased competition will eventually drive fuel prices down.

The government’s strategy is seen as a long-term solution aimed at stabilizing Uganda’s fuel market and ensuring fair pricing for consumers. However, the immediate challenge remains clearing old stocks before consumers can benefit from the expected price relief.