Shell Reduces Oil Prices in Uganda

By Eddyson Lugangwa Posted 20 September 2006 @ 10:31 am EET     Print     Reprint     E-Mail     Comments

Kampala (IBTimes.com) - OIL giant Shell Uganda, has slashed pump prices for petrol at all its fuelling stations in the country by Shs50. A litre of petrol now costs Shs2,250 down from the previous Shs2,300 a price that has been ruling for the last two or so months.Mr Ivan Kyayonka, Shell's Country Manager on Friday attributed the price reduction to the decrease in oil prices on the international market.

"World prices have eased a bit from the high $70s (Shs128,000) to $60s (Shs110,400) per barrel," he said. The ease in fuel prices later impact on the prices of other commodities and services like transport among others.

Kyayonka, however said this is not a guarantee that the price would remain the same. "Tomorrow the prices might go up I can not predict, that it will remain the same anything can happen," he said in a telephone interview on Friday.

He added that the reduction in petrol prices could with time be reflected even in other products such as diesel and kerosene."You will see the movement of prices on petrol first then eventually the other products will follow," Kyayonka said.Meanwhile, Kobil has also reduced its prices on all its products.

The company's spokesperson, Mr Joseph Kisembo, said: "Our new prices cut across all the products. Petrol now costs Shs2,200 while diesel costs Shs1,850 down from Shs1,900."He also attributed the price reduction to changes to a drop in oil price on the international market, adding that the other factors had no effect.