FDC Demands Fuel Tax Cuts

The Forum for Democratic Change (FDC) has called for a review of fuel taxes and full disclosure of petroleum procurement costs, expressing concern that rising fuel prices and the cost of living are increasingly burdening Ugandan households and businesses. The party is urging the government to break down fuel procurement costs, taxes, profit margins, and changes in pump prices, along with implementing an emergency plan to help consumers cope with further increases.

In a media statement signed by FDC Vice Chairperson Centenary Robert Franco, the party criticized the government’s approach to rising fuel prices, arguing that asking Ugandans to reduce unnecessary travel does little to alleviate the economic pressures faced by ordinary citizens. “How do you tell a boda-boda rider to stop moving when that movement is how they earn a living?” Franco questioned. He emphasized, “How do you tell a trader, a farmer, or an ordinary worker to stay home when their livelihoods depend on getting to work, reaching markets, and serving their customers?”

The FDC believes that the government should implement practical measures to reduce the country’s vulnerability to international oil price shocks. These measures include strategic fuel storage, transparent procurement processes, responsible taxation, and diversified supply arrangements.

Franco pointed out that the ongoing economic hardship highlights the challenges Ugandans face in improving their living standards, despite decades of government promises for economic transformation. “Across the country, families are struggling to afford food, transport, rent, school expenses, electricity, and other necessities,” the statement reads.

The party is also demanding that the government disclose the operational status of Uganda’s petroleum storage facilities, their usable capacity, and how many days the existing fuel stocks would sustain essential demand during supply disruptions without triggering price increases. Additionally, FDC is seeking an account of the management of fuel reserves inherited by the National Resistance Movement (NRM) government, claiming that some facilities were neglected while others were sold to private companies.

This demand arises amid growing scrutiny regarding fuel prices and supply security. On October 8, Parliament reported that lawmakers had requested a breakdown of the prices at which the Uganda National Oil Company (UNOC) supplies fuel to oil marketing companies. Energy Minister Monica Musenero informed Parliament on October 7 that rising fuel prices were influenced by several factors, including the depreciation of the shilling, an increase in excise duty of Shs200 introduced in the 2026/2027 financial year, and international supply pressures.

The minister also stated that UNOC plays a role in cushioning Uganda against international price shocks. As reported by the Daily Monitor on October 11, the shilling had weakened beyond Shs4,100 against the US dollar, while diesel prices had surpassed Shs7,100 per litre. This depreciation puts additional pressure on the cost of imported petroleum products. FDC is advocating for the government to review fuel taxation and import-related taxes, as well as implement measures to alleviate foreign exchange pressures that contribute to the cost of essential goods.

The government has previously acknowledged the need to strengthen fuel storage infrastructure. In September, President Yoweri Museveni officiated the groundbreaking ceremony for a 320-million-litre Kampala Storage Terminal in Mpigi District, a project aimed at enhancing petroleum reserves and improving supply security. According to the Office of the President, Uganda’s current national petroleum storage capacity is estimated at 160 million litres, which includes a 30-million-litre facility in Jinja, a 70-million-litre facility at Kawuku, and about 60 million litres operated by private companies. The new terminal is expected to take approximately 24 months to complete.

However, FDC wants the government to go beyond infrastructure expansion by providing clear information on current usable stocks, procurement arrangements, and the country’s capability to withstand supply disruptions. While the party acknowledges that Uganda cannot influence global oil prices, it believes that domestic policies can help mitigate the impact on consumers.

FDC has also called for the repeal of the Protection of Sovereignty Act, arguing that restrictions on international economic relationships could undermine remittances, foreign investment, and other financial flows. The party highlighted that Uganda’s economic success is linked to international trade and investment, warning that policies weakening these connections could exacerbate existing economic difficulties.

In April 2026, the Bank of Uganda cautioned Parliament that the proposed Protection of Sovereignty Bill could negatively impact cross-border financial flows, including remittances and foreign investment, and potentially exert pressure on foreign exchange reserves. FDC further expressed concern over Uganda’s ongoing trade deficit, advocating for increased investment in local production, manufacturing, and agro-processing to reduce reliance on imports and strengthen the economy.