Prof. Suruma links current high fuel prices to Uganda's unexploited oil potential

Uganda is grappling with sharply rising fuel prices, with petrol reaching as high as Shs6,600 per litre, causing significant economic strain across the country. This recurring concern has prompted questions about the viability of the nation’s oil reserves, discovered nearly two decades ago.

According to Prof. Ezra Suruma, an economist and former Finance Minister, the potential benefits of these oil reserves are not yet being realized. He points out that Uganda’s continued reliance on imported petroleum products leaves it vulnerable to global price fluctuations, supply disruptions, and foreign exchange pressures.

Prof. Suruma suggests that while oil production alone won’t immediately lower fuel prices, strategic investments in refining capacity, infrastructure, and industrialization could bolster Uganda’s energy security and mitigate some of its current vulnerabilities. He emphasizes that the true transformation lies not just in extracting oil, but in wisely managing the revenues to foster broader economic development.

Drawing on lessons from his upbringing in Kigezi and his extensive career in public service, including roles at the Bank of Uganda and as Finance Minister, Prof. Suruma advocates for a disciplined approach to resource management. He highlights the importance of investing oil revenues in sectors that generate lasting value, such as manufacturing, technology, tourism, and education, thereby empowering the Ugandan people.

He believes Uganda’s oil story will ultimately be defined by the wisdom applied to managing these resources, ensuring they serve as a blessing rather than a curse for future generations. The nation’s most valuable asset, he contends, is its people, and investing in human capital offers the highest return for national prosperity.