economy 7 October 2026 Daily Monitor (Uganda)
Uganda Govt Has No Control Over Fuel Prices, Minister Musenero States
Minister of Energy, Dr. Monica Musenero, has informed Parliament that the Ugandan government lacks the authority to regulate fuel prices at the pump due to the country's liberalized economy. She cited the depreciating shilling, international conflicts, and other global factors as drivers of the current high fuel costs. Source: https://www.monitor.co.ug/uganda/news/national/we-have-no-control-over-fuel-prices-dr-musenero-5623882
The Ugandan government has acknowledged its inability to directly influence the escalating fuel prices impacting the nation. Minister of Energy and Mineral Development, Dr. Monica Musenero, stated in Parliament that the country’s commitment to a liberalized economy means government holds no control over the pricing decisions made by fuel marketing companies at the pump.
Dr. Musenero explained that a combination of external factors is contributing to the surge. The weakening Ugandan Shilling against the US dollar is a significant issue, making fuel imports more expensive. This depreciation has been exacerbated by global events, including ongoing conflicts such as the war in Iran, which disrupt international supply chains and drive up crude oil prices.
The ripple effects of these high fuel costs are being felt across various sectors. Consumers are facing increased prices for essential goods and transportation. Businesses, including manufacturers and transporters, are grappling with higher operational expenses, leading to reduced purchasing power and potentially impacting economic growth. The cost of diesel, in particular, is critical as it powers essential agricultural machinery, generators, and the logistics network for moving goods throughout the country.
This situation highlights the vulnerability of Uganda’s economy to global market fluctuations and currency volatility. While the government cannot directly set fuel prices, it faces pressure to address the economic hardships faced by its citizens due to these external shocks.