The Ministry of Energy and Mineral Development has revealed that, government continues to engage with fuel suppliers to minimize the impact of global volatility on local fuel prices.
This comes as fuel prices continue to shoot up due to escalating Middle East tensions which has threatened supply, coupled with surging global crude oil costs and local currency depreciation against the dollar.
Here in Uganda, pump prices are currently averaging Shs 5,500 for a liter of diesel, and Shs 6000 for petrol and most filling stations.
While closing the 11th annual oil and gas convection in Munyonyo, Ruth Nankabirwa the Minister of Energy and Mineral Development attributed the rise in fuel prices to Logistical and operational challenges.
”Despite these pressures, Uganda has maintained relatively lower supply premiums compared to the region due to the negotiated arrangements and the UNOX partnership framework. Definitely, global volatility will not leave us the same in terms of prices. The cost of crude has gone up, the refining fees have gone up, the scramble for open space after closing the Strait of Hormuz,’’She said.
The 11th annual oil and gas convection has been running under the theme, “First oil; Fulfilling the Promise, Forging the Future”
On the global scene, according to the BBC, oil prices have hit a one-month high following reports that the US is preparing for an ‘extended’ blockade of Iran.
Brent crude rose to around $115 a barrel on Wednesday, having closed at just over $110 on last evening.
It follows reports from the Wall Street Journal that US President Donald Trump has instructed aides to prepare to extend the ongoing blockade of Iran’s ports, in an effort to squeeze the country’s economy.
