Wednesday, 2 January 2008

Fuel shortage bites in Uganda

From Daily Nation, Nairobi, Kenya
Story by TABU BUTAGIRA and ANDREW BAGALA from Kampala, Uganda

Suggestion that Uganda might hold crisis talks with authorities in Tanzania to permit fuel loading from Mwanza.

The post-election crisis in Kenya is spreading to its neighbours as fuel shortages begin to bite in Uganda.

Pump prices have more than doubled in Kampala as black marketers pocketed staggering profits in roadside sales.

Motorists moved from one “empty” fuel station to another in Kampala and other parts of Uganda as the price of a litre of gasoline, which had risen to USh2,460 on Monday in Kampala, jumped to between USh4,000 and USh5,000 at daybreak on Tuesday. Long queues of anxious clients were witnessed at various pump stations, as local oil suppliers warned of further scarcity if the bloody melt-down in the neighbouring Kenya - and main fuel source for landlocked Uganda -does not calm sooner.

“The continued instability in Kenya has a negative impact not only on fuel supply, but also on other imported goods,” said Mr Ivan Kyayonka, the country manager of Shell Uganda.

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