Petrol prices of up to Shs6,880 per litre and diesel at Shs7,119 are squeezing Lwengo businesses, with taxi operators reporting shrinking profits and farmers struggling to transport produce to better-paying markets.
Rising fuel prices are squeezing transport operators, farmers and traders in Lwengo District, with some drivers parking their vehicles as operating costs rise and earnings decline.
Residents say the high cost of petroleum products has made it increasingly difficult to transport agricultural produce to markets, operate taxis and motorcycles profitably, and sustain businesses that depend on road transport.
Some drivers have resorted to buying fuel in small quantities because they can no longer afford to fill their tanks, while others have suspended operations altogether.
A visit to several fuel stations in Lwengo on Wednesday found petrol prices ranging between Shs6,650 and Shs6,880 per litre, while diesel sold at between Shs6,950 and Shs7,119 per litre.
In Mbiriizi trading centre, several taxi and motorcycle operators said the rising costs had left them struggling to reconcile fuel expenses with the fares passengers could afford.
Umar Mawanda, a taxi operator, said the fares passengers pay for trips to Kampala were no longer sufficient to guarantee a profit after fuel expenses.
“Considering the current fuel prices, we should be charging passengers Shs30,000 for a journey from here to Kampala, but they only want to pay us Shs20,000. A driver can spend between Shs30,000 and Shs40,000 on fuel for a journey to Kampala, and if you are carrying 16 passengers, you may end up with little or no profit,” Mawanda said.
He said operators were struggling to keep their businesses running as fuel costs rose without a corresponding increase in fares.
Transport operators Kayondo Mubaraka and Joseph Lubega said more vehicle owners were parking their vehicles because they could no longer meet daily operating expenses.
“Some people have parked their vehicles because they no longer have work. They spend their days sitting idle instead of earning money. We fear that this situation could also contribute to an increase in criminal activities, including theft, as more people struggle to make ends meet,” they said.
The operators also accused some fuel stations of charging prices they considered unaffordable, adding to the financial pressure on drivers.
One driver questioned why fuel remained expensive despite claims about Uganda’s efforts to develop domestic petroleum refining capacity.
“You wonder what fuel dealers are adding to the fuel they sell. You buy fuel expecting it to take you all the way to Kampala, but it runs out before you even reach Mpigi,” the driver said.
Farmers and traders in Lwengo said the rising cost of transportation was also affecting their ability to reach markets where they could obtain better prices for their produce.
They said transport charges had increased as vehicle owners passed on higher fuel costs to customers, leaving farmers with less money after paying to move their goods.
Some fear they may have to sell their produce within their communities at lower prices rather than incur the additional expense of transporting it to larger markets.
The residents called on Government to explore measures to ease fuel costs, warning that expensive transport could contribute to higher prices for essential commodities and reduce earnings across several sectors.
One resident also questioned why petroleum products remained expensive despite Government statements about developing local refining capacity.
“If the government says Uganda has fuel that is being refined locally, why is fuel still so expensive? Please, help us,” the resident said.
Charles Mbabali, chairperson of transport operators in Mbiriizi, appealed to vehicle owners to exercise patience with drivers as the sector navigates the difficult business environment.
Mbabali said operators were struggling to balance high fuel expenses, long-distance journeys and declining profits, warning that dismissing drivers could worsen their economic difficulties.
He urged vehicle owners to work with their employees as they seek ways to sustain operations amid the rising costs.
Transport operators, farmers and traders are now calling for Government intervention, saying lower fuel prices would ease transport costs, support agricultural marketing and help stabilise the prices of goods and services.
They warn that continued increases could further undermine businesses dependent on road transport, leaving farmers, traders, drivers and consumers to bear the costs.