The price of a barrel of crude oil has gone up by US18 dollars over the last four months, leading to an increase in the pump prices in Uganda.
According to the Uganda National Oil Company (UNOC), the prices have gone up from US$50 to US$68, while locally the cost of a dollar has gone up by Shs 100, from Shs3550 to 3650, factors that have contributed to the increased prices.
Meanwhile, the UNOC says that apart from the increase in dollar rates, there are two other factors that have contributed to increased prices: delayed Open Tender System (OTS) in Kenya and the commissioning of the Mombasa-Nairobi ‘line 5’.
‘The OTS has had to deal with one cancelled tender while another one has been delayed. This has contributed to low supply volumes. Fortunately, this issue has been resolved,’ UNOC wrote about the supply chain.
On commissioning of the Mombasa-Nairobi Line 5 UNOC wrote: ‘This section of the KPC is being developed to address logistics constraints of supplying a market which is growing at 6 percent per annum. Therefore, there is increased demand in volumes outstripping supply’.