Government cannot control market forces

January 23, 2018 in Markets by Editor

January 23—Prime Minister Dr. Ruhukana Rugunda has reminded Ugandans the government cannot control market forces in light of recent spikes in fuel prices.

Dr. Rugunda assured Ugandans the price changes have nothing to do with supply constraints.

“This is a market dynamic that the business community has to find a way of dealing with. The fuel prices are controlled by the cost of the dollar and the global oil prices. What I can say is that currently we have enough fuel in our (fuel) reserves and the prices are not due to shortfall in supply,” Rugunda said.

There has been a recent outcry from the general public, especially traders and those that own private vehicles, about the rise in petrol and diesel prices. However sources in the foreign exchange market told 256BN the shilling is likely to settle in the UGX3620-UGX3640 bracket for the near future due to low demand for the dollar unlike during the festive season last month.

According to the International Energy Agency, the price of Brent crude oil closed last week above $70 per barrel for the first time since the end of 2014.