PARLIAMENT – Budadiri East Member of Parliament Hon. Eng. Julius Nakiyi has urged the Government to prioritise domestic oil refining as a long-term solution to the challenges arising from fuel pricing and depreciation of the Uganda shilling.
Speaking on the floor of Parliament, Nakiyi said Uganda’s dependence on imported refined petroleum products exposes the country to price movements and other factors that are beyond the control of local authorities.
He called for greater transparency in the presentation of fuel prices, urging responsible officials to provide Parliament and the public with clear information showing how the final price of fuel is determined.
Nakiyi proposed that officials prepare a simple Excel spreadsheet showing movements in fuel prices over different periods and breaking down the various cost drivers. He said this would enable Ugandans to distinguish between costs that are within the country’s control and those influenced by external factors.
“For example, exchange movement is not under your control; you put a remark, this is based on whatever the central bank,” Nakiyi said, emphasising the need for evidence-based explanations of changes in fuel prices.
He further urged officials to clearly show how the unit price of fuel is built up, arguing that such information would allow Ugandans to understand the factors contributing to the final price rather than relying on lengthy explanations.
Nakiyi then turned to the country’s oil refinery project, urging the General Manager of the Uganda Refinery Company to update the relevant parliamentary committee on the status of the project.
“The long-term solution, you see, you are the general manager of the Uganda Refinery Company. The lockdown solution is import substitution, where we should start refining our oil so that now issues of depreciation of the shilling, they don’t affect us,” he said.
Nakiyi said progress on the refinery would help address the challenges under discussion and provide a more sustainable solution in the long run. His intervention highlights the importance of developing domestic refining capacity as Uganda seeks to maximise the benefits of its petroleum resources and reduce exposure to factors affecting imported fuel prices.
