Ugandans Decry High Pump Prices After Ruto Imposes New Tax
Ugandans have criticized President William Ruto’s government for imposing a $40 million bond fee on fuel imports transiting through the port of Mombasa.
PML Daily, a Ugandan news outlet, reported that this move might hinder President Yoweri Museveni’s attempts to reduce rising pump prices.
Uganda’s Energy Minister expressed frustration, suggesting that this decision could lead the Uganda National Oil Company (UNOC) to hike fuel prices.
The minister also mentioned that increasing the levy on Ugandan petroleum imports poses a significant obstacle to the country’s goals and contradicts the principles of the East African Community.
“The funds we’re losing to intermediaries, which the government aims to save, will now go to the Kenyan government,” said the Chairperson of Uganda’s Sustainable Energies and Petroleum Association (SEPA).
“The tax will compel UNOC to raise prices to remain profitable,” he added, urging Ruto’s administration to reconsider.
Sources familiar with the situation revealed that Uganda is considering alternative routes, like the southern corridor, to lessen its dependence on Kenya for fuel imports.
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This decision follows an agreement made just two months ago between Presidents William Ruto and Yoweri Museveni to extend the oil pipeline from Eldoret to Uganda.
During Museveni’s visit to Nairobi, both leaders emphasized the importance of cooperation, highlighting that this move would strengthen trade relations between the countries.
They also signed an agreement allowing the Uganda National Oil Company to import petroleum products through the port of Mombasa.
“The agreement on importing and transiting refined petroleum products through Kenya to Uganda, which we have just witnessed, allows Uganda National Oil Company Limited to directly import refined petroleum products from various producers,” Ruto said in a joint press conference with Museveni.
“Kenya and Uganda share a deep bond rooted in common history, culture, and aspirations for regional peace and prosperity,” Ruto added.
Ugandans Decry High Pump Prices After Ruto Imposes New Tax
