Home » Breaking News, Business » Fuel Prices Hiked as Shortage Hit Most Filling Stations

By Maureen Nakigozi

Kampala has been hit by petrol shortage which has forced the prices to shoot up due to high demand compared to the supply.

The new price of petrol per litre at Rio Oil, eagle and Kobil fuel stations had risen to sh3900 as of yesterday evening. At most petrol stations a litre costs between sh3,550 and 3,900.

According to rev. Frank Tukwasibwe, a commissioner in the petroleum supplies department in the energy ministry, the shortage has also hit most total filling stations.

Rajni Tailor, national chairman , the petroleum dealers has said that the prices of fuel especially petrol has been due to low supply compared to the demand. Rajni said that government no longer allows fuel dealers to reserve and store fuel in bonded warehouses before paying taxes yet it is risky considering the fluctuations in the dollar.

He says that this has made dealers to  import fuel for consumption  there and then causing shortage in case of low supply from the providing countries.

However, Diesel prices have remained stable with a litre going for sh3,100 and sh3,220.