Kakira Sugar and other factories petitioned the High courtUgandan taxpayers are set to shoulder an additional financial burden following parliament’s passage of the Excise Duty (Amendment) Bill, 2026, which introduces a Shs 200 excise duty per litre of fuel. Beyond fuel, the Bill once assented to by the President also raises excise duty on sugar from Shs 100 to Shs 300 per kilogram, cement to Shs 750 per 50kg bag, down from an earlier proposed Shs 1,000, imported spirits to Shs 3,500 per litre or 80 per cent (whichever is higher), and motorcycles at first registration from Shs 200,000 to Shs 500,000. The Bill, which was strongly opposed by opposition MPs, was passed on Tuesday and is expected to generate more than Shs 450 billion in additional revenue, largely from essential commodities. State minister for Finance (General Duties), Henry Musasizi, defended the proposal, saying it was necessary to support government revenue mobilisation. “If we pass this proposal, it will give us Shs 450 billion. If we don’t pass it, we are forfeiting Shs 450 billion. We are in this to look for revenue to finance the budget,” Musasizi said. “You cannot say that what is happening in Iran now can be the basis of our making decisions here.” The parliamentary finance committee backed the levy, arguing that the Uganda National Oil Company’s (UNOC) bulk procurement strategy would cushion consumers from sharp price shocks. However, a minority report led by Kira Municipality MP Ibrahim Ssemujju, alongside several legislators including Karim Masaba (Mbale Industrial Division), Hanifah Nabukeera (Mukono District Woman MP), Brenda Nabukenya (Luwero District Woman MP), Anna Adeke Ebaju (Soroti City Woman MP), and Geoffrey Ekanya (Tororo County), recommended scrapping the fuel levy or reducing it to Shs 50 per litre, warning that the cost would ultimately be passed on to consumers. “Fuel prices are already high and are expected to increase further as a result of geopolitical tensions in the Middle East. As of this morning, the pump price has hit Shs 5,500 per litre,” Ssemujju said. “The IMF and World Bank have said even if the war in the Middle East stops, it will take a whole year for oil prices to stabilise.” The Institute of Certified Public Accountants of Uganda (ICPAU) also advised a more modest, inflation-based adjustment. Uganda consumes between 3.5 and 6.5 million litres of petroleum products daily and remains fully dependent on imports, with analysts warning that even marginal tax increases could drive up transport and production costs in an already inflation-sensitive economy. The Ministry of Finance, however, maintains that the Shs 200 increase is modest and unlikely to significantly distort pump prices, urging the public to avoid panic buying as government continues to monitor supply and pricing. In a joint statement issued on April 21, the Uganda National Oil Company and the Ministry of Energy and Mineral Development said national fuel stocks remain stable, with additional shipments expected from May. UNOC chief corporate affairs officer Tony Otoa said current reserves, though below the statutory minimum, remain sufficient when combined with incoming supplies. “Current stock levels as of April 20 stand at 70.5 million litres of petrol (19 days’ cover), 43.2 million litres of diesel (12 days’ cover), and 32 million litres of jet fuel (53 days’ cover),” Otoa said. While these levels fall short of the 21-day strategic reserve requirement under the Petroleum Supply Act, 2024, UNOC noted that shipments expected between May and June will significantly boost supply, including 183 million litres of petrol and 258 million litres of diesel. The imports, routed through Mombasa and Tanzanian ports, are being procured under UNOC’s arrangement with Vitol Bahrain E.C., which has supplied more than 2.6 billion litres since 2024. “Sufficient stocks and incoming deliveries secure Uganda’s supply,” Otoa said. The ministry of Energy also acknowledged occasional retail shortages, particularly in border areas, attributing them to operational challenges and increased cross-border demand. Pump prices currently average about Shs 5,400 per litre for petrol and Shs 5,090 for diesel nationally, with higher prices recorded in Kampala and border towns such as Arua and Tororo, partly driven by global crude oil price fluctuations linked to tensions in the Middle East.The post Ugandans to pay more for fuel, sugar, cement as Excise Duty Bill passes appeared first on The Observer.