Vivo Energy has explained why fuel prices in Uganda have not reduced as expected despite a drop in the global prices of crude.
This comes after a public outcry that Uganda’s pump price has remained high yet crude oil prices have dropped from $100 to $50 per barrel.
Vivo Energy Uganda, Managing Director Mr Hans Paulsen while addressing the media, cited some of the factors that are affecting fuel prices.
He told the media that cost of production and new taxes introduced on fuel last year are some of the factors that are affecting fuel prices.
He also noted that Depreciation of the Uganda Shilling between June 2014 to date has a great impact on the fuel prices. 1st June 2014, US$ 2556, to date at $ 2830.
In July 2014 week one, the shilling opened trading at Ush2, 642 but depreciated further to Ush2, 657 in week two causing, petrol pump prices to increase from an average of Ush3, 650 per litre to Ush3, 800.