ARE UGANDANS BEING DUPED?…As Shilling Strength Vs Dollar Fails to Lower Fuel Prices

KAMPALA — For the past six months, the Ugandan shilling has been gaining steadily against the US dollar, a development that in normal market conditions should translate into lower pump prices for fuel — since petroleum products are imported and priced in dollars.

But despite the stronger shilling, fuel prices have stubbornly remained unchanged, leaving many Ugandans wondering whether the pricing system only works one way — upward.

When the dollar appreciates, pump prices rise almost instantly. Yet when the shilling strengthens, the same pumps stay silent, the digits frozen, and the consumers unmoved.

This has sparked growing concern among motorists, traders, and analysts about the transparency of Uganda’s fuel pricing mechanisms and whether the public is truly benefiting from favorable forex trends.

“It’s ironic,” said a business owner in Kampala. “They tell us to celebrate the strong shilling, but we don’t feel it anywhere — not in transport fares, not in electricity, not even at the fuel stations.”

Economists argue that several factors influence local pump prices — including global crude oil movements, import logistics, and taxes — but many agree that forex fluctuations play a major role.

Still, the question lingers: If the shilling’s gains can’t ease pressure at the pump, then what’s the point of celebrating them?

Public frustration continues to grow as transport fares remain high, businesses struggle with elevated operational costs, and the overall cost of living stays punishing.

Many Ugandans fear that once the dollar rebounds, fuel prices will shoot up immediately, with little to no explanation — the same cycle that has repeated for years.

“Tufuniramu wwa?” asked one commuter in disbelief. “Where do we benefit?”

As the conversation gains traction online, citizens are calling for greater transparency and fairness in fuel pricing, demanding that government agencies and oil companies openly explain how forex movements translate — or fail to translate — into retail fuel prices.

It’s a question many Ugandans are now asking: When the numbers work in our favour, why don’t we feel the relief?