Ugandan Parliament Debates Fuel Hikes and Currency Depreciation
Ugandan lawmakers and ministers clash over rising fuel prices and a weakening shilling, citing Middle East instability and domestic tax increases as primary drivers.
Members of the Parliament of Uganda are demanding government action following a rapid depreciation of the Ugandan shilling against the US dollar and a spike in fuel prices. Joel Ssenyonyi, Leader of the Opposition, warned that the weakening currency is increasing costs for importers and criticized the Uganda National Oil Company for failing to stabilize retail petrol and diesel prices, which have fluctuated between Shs6,800 and Shs7,000 per liter.
Minister of Energy Monica Musenero attributed the price hikes to international petroleum costs, a Shillings 200 per litre excise duty increase effective July 1, and currency depreciation. Musenero noted that the exchange rate rose from approximately Shillings 3,790 per US Dollar in early September to approximately Shillings 4,035 per US Dollar, adding an estimated UGX 300 per litre to costs. Minister of Defence Kiryowa Kiwanuka further linked the volatility to Middle East instability and a 40 percent rise in Brent crude.
While the government is expanding storage infrastructure at the Jinja and Kampala terminals and pursuing alternative supply routes via Tanzania to improve resilience, opposition members have proposed temporary tax relief or the suspension of the excise duty increase. Ssenyonyi also urged the government to prepare for potential supply disruptions linked to upcoming elections in Kenya. Deputy Speaker Thomas Tayebwa has requested formal statements from the finance and energy ministers to address these economic pressures.
