{"id":9757,"date":"2021-05-06T16:33:04","date_gmt":"2021-05-06T16:33:04","guid":{"rendered":"https:\/\/www.africa-press.net\/uganda\/?p=9757"},"modified":"2021-05-06T15:34:18","modified_gmt":"2021-05-06T15:34:18","slug":"pump-prices-rise-ahead-of-new-tax","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/uganda\/all-news\/pump-prices-rise-ahead-of-new-tax","title":{"rendered":"Pump prices rise ahead of new tax"},"content":{"rendered":"

Africa-Press<\/a> – Uganda<\/a>. <\/strong><\/span>Even before the new tax on fuel comes into effect on July 1, fuel stations have already increased pump prices for the product.<\/p>\n

Through a mini-survey, Daily Monitor has established that the pump prices of fuel have significantly increased, with operators of public transport such as taxis and boda boda riders left with no option but to pass on the increment on to their clients.<\/p>\n

In Masaka City, fuel prices have also increased. At Shell Buddu Filling Station, a litre of petrol is at Shs4,100, up from Shs4,000, while that of diesel is now Shs3,650, up from Shs3,600.<\/p>\n

At Mogas filling station, petrol now costs Shs3,800 per litre, up from Shs3,750 last week, while a litre of diesel currently costs Shs3,350 up from Shs3,300. A litre of paraffin is now Shs2,980, up from Shs2,950.<\/p>\n

A pump attendant at Mogas filling station, who preferred anonymity in order to speak freely, said the prices have been reviewed upwards to \u2018warm the customers up\u2019 for the new tax on fuel, which takes effect July 1.<\/p>\n

\u201cIt is no longer a secret that prices are going to be raised after the government slapped new taxes on the fuel and, of course, it will affect the final user,\u201d he said.<\/p>\n

At Gaz filling station on Mutukula Road, petrol now goes for Shs3,750 a litre and Shs3,600 for diesel.<\/p>\n

At BAM filling station on the same road, a litre of petrol is at Shs3,800, up from Shs3,750, while that of diesel is at Shs3,350, up from Shs3,300 last week.<\/p>\n

Mr Sulait Lutakome, a proprietor of a fuel station in Kalangala Town Council, says the fuel prices are determined by the suppliers and the distance they move to reach their filling stations.<\/p>\n

\u201cWe are forced to increase prices based on the selling prices by the suppliers. Given the current situation, the hiked prices are in preparation for the new tax in the next financial year,\u201d he says.<\/p>\n

Mr Gerald Kiggundu, a taxi operator who plies the Kalangala-Masaka road, said: \u201cWe are working at a loss. We call upon the government to regulate the prices of fuel since every filling station has autonomy over their fuel prices,\u201d he told Daily Monitor on Monday.<\/p>\n

In Lugazi Municipality, Buikwe District, almost all major fuel filling stations have increased prices of fuel.<\/p>\n

A litre of petrol currently sells for between Shs3,900 and Shs4,090, while that of diesel is sold between Shs3,550 and Shs3,670, depending on the filling station.<\/p>\n

Because of this, many boda boda riders in the municipality are refuelling their motorcycles from smaller petrol stations, which charge slightly lower prices compared to well-establish petrol stations.<\/p>\n

Mr Akram Mudduse, a truck driver in Mpigi District, attributes the increasing fuel prices to the general rise in prices of basic necessities.<\/p>\n

\u201cThose who buy things from markets know what I am talking about. Prices of basic items have increased and since fuel sellers also buy from the same markets, they are increasing the prices of fuel to keep in business and also pay government taxes,\u201d he says.<\/p>\n

The situation has greatly affected fishermen and motorboat transporters.<\/p>\n

Mr Sunday Kayita, who owns about 100 fishing boats at Kachungwa Landing Site in Mazinga Sub-county, Kalangala District, said he has so far suspended operations of 30 of his boats due to the surging fuel prices amid slow business.<\/p>\n

\u201cAll our work depends on fuel (petrol) and if prices increase, it affects us squarely. We could have increased prices of fish, but it is also scarce in the lake,\u201d he said.<\/p>\n

An attendant at one of the fuel stations in Kabale Town, who preferred anonymity for fear of being reprimanded by his bosses, said they were directed to increase the pump prices by Shs100 because their suppliers reportedly encountered transportation challenges.<\/p>\n

The prices at Shell and Total fuel stations in Kabale Town on Tuesday was Shs4,170 per litre of petrol and Shs3,760 per litre of diesel.<\/p>\n

At Baji filling station, petrol went for Shs3,990 per litre, while that of diesel was Shs3,640.<\/p>\n

Several people who Daily Monitor spoke to expressed concern that travellers will bear the brunt of the fuel tax hike, saying transport fares will increase.<\/p>\n

\u201cAs soon as we increase the pump prices, the tax and bus operators will automatically increase the fares, meaning it won\u2019t affect us but the passenger, the common man,\u201d Mr Badru Koire, a fuel pump attendant at Total filling station, said.<\/p>\n

On average, fuel prices in Mbarara City range between Shs3,980 and Shs4,150 for a litre of petrol, up from Shs3,800. A litre of diesel is going for between Shs3,700 and Shs3,750, up from Shs3,450.<\/p>\n

Mr Mujurizi Behakanira, fuel dealer in Mbarara City, said: \u201cTrue, we don\u2019t produce fuel here yet but the government has a hand in ensuring stable prices of fuel.\u201d<\/p>\n

Background<\/b><\/p>\n

Tax on fuel<\/p>\n

Last month, Parliament endorsed a raft of government\u2019s proposed taxes in desperate attempts to raise revenue to resuscitate the economy that is suffering from the effects of Covid-19 pandemic.<\/p>\n

Under the Excise Duty Amendment Bill, 2021, that was endorsed by Parliament, Motorists will pay a Shs100 tax increase per litre of petrol and diesel.<\/p>\n

Government argues that the fuel tax would compensate for the earlier proposed annual road licence fee; Shs200,000 per motor vehicle and Shs50,000 per motorcycle, that has since been dropped.<\/p>\n

The fuel tax is expected to fetch an additional Shs196b.<\/p>\n

All the new taxes take effect on July 1.<\/p>\n

The tax increment will raise the tax on petrol to Shs1,450 per litre and Shs1,130 per litre of diesel.<\/p>\n

Compiled by Philip Wafula, David Awori, Denis Edema, Tausi Nakato, Sam Opio Caleb, Abubaker Kirunda, Oliver Mukaaya, Al-Mahdi Ssenkabirwa, Fred Ssewajje, Brian Adams Kesiime, Derrick Kissa, Malik Fahad Jjingo, Sylvester Ssemugenyi, Alex Tumuhimbise, Alex Ashaba, Andrew Mugati, George Muron, Rajab Mukombozi, Robert Muhereza & Emmanuel Arineitwe<\/b><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Uganda. Even before the new tax on fuel comes into effect on July 1, fuel stations have already increased pump prices for the product. Through a mini-survey, Daily Monitor has established that the pump prices of fuel have significantly increased, with operators of public transport such as taxis and boda boda riders left […]<\/p>\n","protected":false},"author":84,"featured_media":9756,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,8],"tags":[233,240,234],"class_list":["post-9757","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-homepage-english","tag-africa-press","tag-africa-press-uganda","tag-uganda"],"yoast_head":"\nPump prices rise ahead of new tax - Uganda<\/title>\n<meta name=\"description\" content=\"Even before the new tax on fuel comes into effect on July 1, fuel stations have already increased pump prices for the pr ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/uganda\/all-news\/pump-prices-rise-ahead-of-new-tax\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Pump prices rise ahead of new tax\" \/>\n<meta property=\"og:description\" content=\"Even before the new tax on fuel comes into effect on July 1, fuel stations have already increased pump prices for the pr ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/uganda\/all-news\/pump-prices-rise-ahead-of-new-tax\" \/>\n<meta property=\"og:site_name\" content=\"Uganda\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2021-05-06T16:33:04+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/uganda\/sites\/34\/2021\/05\/img-60940c5d0f2ce.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"720\" \/>\n\t<meta property=\"og:image:height\" content=\"362\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/pump-prices-rise-ahead-of-new-tax#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/pump-prices-rise-ahead-of-new-tax\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/uganda\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Pump prices rise ahead of new tax\",\"datePublished\":\"2021-05-06T16:33:04+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/pump-prices-rise-ahead-of-new-tax\"},\"wordCount\":972,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/pump-prices-rise-ahead-of-new-tax#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/uganda\/sites\/34\/2021\/05\/img-60940c5d0f2ce.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-Uganda\",\"uganda\"],\"articleSection\":[\"all news\",\"economy\",\"homepage-english\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/uganda\/all-news\/pump-prices-rise-ahead-of-new-tax#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/pump-prices-rise-ahead-of-new-tax\",\"url\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/pump-prices-rise-ahead-of-new-tax\",\"name\":\"Pump prices rise ahead of new tax - 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