Only 48 Hours To Paralyze Uganda As Shortages, Hoarding & Price Spikes Hammer Nation, Economy

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IT took only a couple of days to paralyse Uganda. Within 48 hours, the violence in Kenya had led to severe fuel shortages all over the country, pushing up oil prices, doubling bus fares, raising food prices and seriously affecting business and public life. Dealers were greatly taking advantage of the crisis to hoard and ask exorbitant prices, up to four-fold in the case of petrol.

Contrary to other countries, which have oil reserves that can last months or even years, Uganda's reserves seem to be minimal, if existent at all. The country needs 1.2m litres of diesel per day, almost half of which is used for power generation, and 543,000 litres of petrol. ENERGY minister Daudi Migereko has declined to reveal how much fuel is in the reserves. "There is something but we have declined to release the figures. We don't want them to become a subject of debate," he told Saturday Vision.

Earlier, in March 2007, energy state minister Simon D'Ujanga had told Parliament the reserves were dry. "The reserves have been used up," he said. "It will be trickling in. At the moment we cannot talk about reserves because whatever comes in is being consumed."

The question is whether anybody knows at any given time how much oil reserves the country has. In the mid 70s the Government started the construction of four fuel depots, in Jinja, Nakasongola, Gulu and Kasese. However, of the four depots that were in plan, only one, in Jinja, with a total capacity of 30 million litres, was actually completed.

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