The Speaker of Parliament Anita Annet Among has called on the government to operationalize regional fuel reserves as a measure to mitigate the impact of increasing fuel prices on Ugandans.
She made the statement on Tuesday, September 5, 2023, during the plenary session in response to a statement the Minister of State for Energy, Mr. Sidronius Okaasai, made to the House regarding the unabated increase in fuel prices.
“The fuel reserves in Jinja alone are not sufficient; we require regional fuel reserves given the ever-rising demand for fuel,’’ Among said.
She further said that the reserves will also help cushion the country from well-known, unpredictable fuel shortages.
In a statement by Minister Okaasai, he said that global factors beyond Uganda’s control are behind the spike stating that there is not much his ministry can do.
“The surge in global oil demand to record levels, especially during the summer season in Europe and the United States, has put immense pressure on oil prices; thus, high demand, driven by seasonal factors and increased economic activity, has contributed significantly to the recent spike in fuel prices worldwide,” Okaasai said.
However, this did not sit well with legislators like Ibrahim Ssemujju Nganda, who asked the Minister Okaasai about fuel reserves, saying short of solutions, Parliament should not entertain the statement.
“He [Minister Okaasai] should come here and tell us what happened to the reserves, short of which I move a motion without notice for Parliament to reject the statement,” he said.
He further asked the government to develop a tangible plan to scout around the hikes in prices instead of allowing market forces to determine what becomes of Ugandans.
Speaker Among argued that whereas pricing in a free market economy like Uganda is dependent on demand and supply, the government should devise means of preventing the erosion of disposable income for many Ugandans, which may lower their living standards.