RSSFuel is heating the Economy
29 Mar 2010 16 Comments
Posted in 1
One early morning early last week, I pulled at Hashi Petrol station in Nansana and gave the pump attendant, Rachael a twenty thousand shilling note. At 2500 shillings a litre, she fills eight litres. I varoom off in the knowledge that 104 litres will last the whole day.
As the week bore on, something disturbing began to emerge in the petroleum industry. The fuel price is rising, an upward movement that is now capping at 3000 litres. A 20% increment that can get worse, that will heat the economy to our pain and agony. The contagion is slow, it will move to the food sector where transporters are too keen to pass the fuel hikes to vendors. At that point, the pain will manifest clearly, taking food off the menu for most people.
Ultimately, the salariat, especially those in the lower quartile will fill the pinch. As reducing spend on food is not bad enough, some employers will cut jobs. The employers in the informal sector are wont to doing this.
Tough times lie in wait. Although no marked reaction is forth coming so far from allied industries, the explosion is looming, it will take a firm hand from government to stop this spiral. If it does not, the fuel crises will lead to the economy to slow down.
Ras could not have captured the mood better. That this palm Sunday, Jesus Christ will travel on a donkey because fuel prices have ruled out driving in car for him. For many people this was the reality yesterday.
Guys, we have high quality hydrocarbons waiting for us to come get them in Bunyoro. Why the long wait. Time is now to bring forth this black gold and let be the risky dependence on OPEC supplies be.
May 06, 2010 @ 17:29:06
Well, the hydrocarbons in the western rift valley are certainly are keeping us waiting…or is it the politics? According to this website…there are fishy things happening as we have always suspected.
http://www.carbonweb.org/showitem.asp?article=376&parent=39
yet rumours also indicate that certain large trucks are ferrying samples out of the place…
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