Diesel Prices Surge to Shs7,290, Threatening Ugandan Businesses

Business owners and manufacturers across Uganda are facing severe operational hurdles following a dramatic surge in fuel prices. Over the past six months, the cost of diesel has experienced an unprecedented upward spiral, jumping from Shs4,700 per litre in April to an alarming Shs7,290 at many fuel pumps in Kampala.

Upcountry areas are experiencing a similarly harsh reality, with pump prices fluctuating between Shs7,150 and Shs7,200 per litre. This massive increase translates to an additional Shs2,590 on every single litre purchased, marking a steep 55 percent rise in a relatively short timeframe.

The financial implications for commercial transport and logistics are profound. For a standard vehicle with a 50-litre fuel tank, the total cost to fill up has escalated sharply from Shs235,000 in April to Shs364,500 today. This leaves fleet operators and transport companies grappling with an immediate extra expenditure of Shs129,500 per fill-up, completely independent of other rising maintenance expenses.

Beyond transport, the soaring fuel costs present a critical threat to industrial productivity and small business viability. Many factories and commercial establishments that rely heavily on backup generators to cope with power instability are now forced to weigh whether they can sustainably afford to keep their generators lit and factory turbines running.

Read more details on this developing story at the Daily Monitor.