Rising Fuel Prices Put Pressure on Ibanda Transport Operators

What the report says

Bodaboda riders and taxi drivers in Ibanda District are warning that rising fuel prices are squeezing their earnings and threatening the viability of their transport businesses, according to Nile Post. Operators say fuel costs have gone up while passengers are resisting fare increases, leaving many with little or no profit from daily trips.

The report says petrol at a Shell Fuel Station in Ibanda was selling at about Shs6,950 a litre and diesel at about Shs7,150 as of Tuesday evening. Transport operators interviewed said the higher costs are making it harder to cover operating expenses, with some considering raising fares and others saying they may have to stop working if conditions do not improve. The concerns are shared by both motorcycle taxi riders and taxi drivers, who say their incomes have not kept pace with the price increases.

Nile Post places the local complaints in a wider national context, noting that fuel prices have been rising across Uganda amid pressure on the shilling and higher global oil, freight and insurance costs. The article also says the latest increases are linked in part to disruption in global energy markets. As a background matter, Uganda imports much of its petroleum, so exchange-rate weakness and international supply disruptions can quickly affect pump prices.

The operators are appealing to government to intervene and help stabilize fuel prices. Their immediate worry is that if costs keep climbing while fares stay unchanged, transport services in Ibanda could become less sustainable and the burden may eventually be passed on to consumers.