President Museveni wants a rapid shift to electric vehicles as a long-term solution to crude oil supply shocks

July 24th 2022, 3:37:22 pm
President Museveni pardoned prisoners on humanitarian and health grounds
  • The president’s comments came in the wake of galloping fuel prices in Uganda.
  •  Diesel in Kampala sells for Ush6,500 ($1.72) a litre, while petrol sells for Ush7,000 ($1.85).

Uganda President Yoweri Museveni has flagged an accelerated shift to electric vehicles and clean energy as a long-term solution to deflect the soaring costs of oil and gas caused by the war in Ukraine.

“This is the answer. The correct way is to start moving away from petrol to electric cars, and we have already started,” President Museveni said, rejecting fuel subsidies suggested in some quarters to lower costs.

According to The East African, President Museveni's comment came during a live TV broadcast following the galloping fuel prices in Uganda on Wednesday.

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Fuel filling stations across the country have increased their prices, with Diesel in Kampala selling for Ush6,500 ($1.72) a litre, while petrol sells for Ush7,000 ($1.85).

Earlier this week, Dr Joseph Muvawala, the executive director of the National Planning Authority (NPA), also revealed plans for the direct importation of crude oil from the producing countries as a short-term measure. According to him, the development would eliminate Kenyan oil marketers that hold contracts to buy petroleum products for refining and supply to wider Eastern Africa.

For a while, Uganda has been exploring ways to cut its reliance on Kenya for fuel imports, routing shipments through neighbouring Tanzania as an alternative supply source.

Industry data shows that Uganda’s fuel imports from Tanzania have drastically increased, growing from 5% two years ago, to more than 20%, as fuel prices continue to shoot.

Dr Joseph Muvawala explained that President Museveni sees the solution in the locally made fully electric car Kiira EV and the passenger service bus Kayoola EV.

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“This pressure is to spend the little money we have on problems, and we would rather use it to get out of problems permanently. The long-term solution is the electric car and trains,” he said.

He added, "Electric vehicles are cleaner; don’t have pollution, are cheaper and [have] less maintenance costs.”

Victor Oluwole
Head and Editor at Business Insider Africa


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