OTIMGIW PUSHES TAX RELIEF AS FUEL PRICES RISE

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By Oringi Denis

Padyere County Member of Parliament, Hon. Otimgiw Isaac, has called on government to consider temporary tax relief on petroleum products as a measure to cushion Ugandans against the rising cost of fuel.

Otimgiw was responding to a statement by the Minister of Energy and Mineral Development, Dr. Monica Musenero, on the rising fuel prices in the country.

The Minister told Parliament that changes in pump prices should be assessed against both international and domestic macroeconomic conditions.

She attributed part of the increase to the Excise Duty Amendment Act 2026, which increased the applicable excise duty by 200 shillings per litre, saying the additional cost has been reflected in the domestic fuel market.

The Minister also said price differences between Kampala and upcountry markets are not unjustified, citing variations in market conditions and supply costs.

However, Otimgiw questioned why the benefits expected from the Uganda National Oil Company, UNOC, as the country’s designated petroleum supplier, have not yet sufficiently shielded consumers from such shocks.

He said the Petroleum Supply Amendment Act of 2023 gave UNOC the mandate to take the lead in petroleum supply, negotiate petroleum products in bulk and develop mechanisms, including adequate storage, to address challenges in the sector.

Otimgiw said the Ministry’s explanation about new fuel supply routes and other interventions are measures that should have been anticipated and implemented earlier.

The legislator urged government to learn from neighbouring and other countries that have introduced temporary tax measures to cushion consumers from high fuel prices.

He cited Kenya, which he said reduced Value Added Tax on petroleum products from 16 to 8 percent, as well as Zambia, which suspended excise duty for three months.

He also cited South Africa, which he said reduced the fuel tax burden by three rand per litre.

Otimgiw estimates that taxes imposed on petrol and diesel in Uganda amount to nearly 850 shillings per litre.

He is now calling for temporary tax relief as government works on longer-term measures to stabilize petroleum prices.


“Let us try to come up with ways of cushioning the price through tax relief for our people, so that the price can come a bit lower.”

The call comes amid growing public concern over rising fuel prices and their impact on transport, food prices, businesses and the wider cost of living.

End

AfricaPamoja.ug 

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