Business 16 April 2026 Daily Monitor (Uganda)
Shs200 Fuel Tax Hike Sparks Fears of Surging Costs Amid Global Tensions
Uganda's proposed Excise Duty (Amendment) Bill 2026 seeks to increase petrol and diesel taxes by Shs200 per litre, prompting warnings from experts about rising pump prices, living costs, and economic strain. Critics highlight poor timing due to Middle East conflicts disrupting oil supplies. Source: https://www.monitor.co.ug/uganda/business/markets/pain-at-pump-how-a-shs200-fuel-tax-will-drive-up-costs-5425838
Parliament is considering the Excise Duty (Amendment) Bill 2026, which proposes raising excise duties on petrol to Shs1,750 per litre and diesel to Shs1,430 per litre—a Shs200 increase from current rates.
Sector experts, economists, and policy analysts agree this will push up fuel prices at the pump, inflating costs of living and business operations across transport, agriculture, and manufacturing.
Nicholas Kabonge from PricewaterhouseCoopers notes that even modest duty hikes amplify through the supply chain, already burdened by import charges and levies, amid U.S.-Israel tensions with Iran destabilizing global oil markets.
Civil Society Budget Advocacy Group (CSBAG) executive director Julius Mukunda argues the timing is off, following a July 2024 increase and with ongoing Middle East volatility risking further inflation. BDO East Africa and SM & Co. Advocates echo that it could uncontrollably drive inflation.
Tax Justice Alliance Uganda criticizes the move as adding to taxpayer burdens without expanding the tax base, especially without robust public transport. Industry expert Peter Ochieng details how factors like crude prices, freight, exchange rates, and local taxes directly translate to higher pump prices.
While Finance Ministry’s Moses Kaggwa defends it as necessary revenue recovery, consensus leans toward maintaining current rates. Uganda currently enjoys East Africa’s lowest pump prices despite regional hikes.
Source: Daily Monitor (Uganda)