The president announced that his administration would step up its support of palm oil cultivation in places like Kalangala, Buvuma, and Maruzi. (Fuel – Subsidies – and Tax Cuts Have No Hope After President Museveni’s Speech)
During his Wednesday night address on current issues, President Yoweri Kaguta Museveni reassured Ugandans that the government had no intentions to provide subsidies, lower taxes, or lower gasoline taxes.
According to Museveni, the government should invest in more significant initiatives like palm oil, electric trains, and buses rather than cutting taxes.
“Therefore, the error of subsidies and tax cuts is dual; you deceive people into thinking that the situation is good while also destroying their capacity for frugality. Finally, you can have shortages as a result of the high prices. Therefore, we would rather invest the money in a safer method; as a result, we are increasing capacity for our palm oil instead of using it to subsidize the current error, says Museveni.
The president announced that his administration would step up its support of palm oil cultivation in places like Kalangala, Buvuma, and Maruzi.
There is a difference between high pricing and a shortage; if you subsidize this risk, people will keep buying more and more because you’ll have given them an unnatural sense of security that will lead them to believe things are normal even though they are not.
He insisted that the ongoing conflict between Russia and Ukraine is leading to a move away from fossil fuels in the West.
According to the president, Uganda should embrace electric vehicles, motorcycles, and rail travel as the future of petroleum is gradually dwindling.
The right course of action is to begin switching from gas to electric vehicles and utilize the railroad for transportation, particularly of goods. The answer to choose is this. The fact that we have begun producing electric buses here is a plus. To produce more buses in Kiira, they will need Shs 20 billion.
We should invest in correcting the faults rather than spending money to subsidize them, argues Museveni.
The oil firms ceased exploring for petroleum after this declaration was passed since it would be phased out, he continued. The limited gasoline that is available is incredibly expensive because there will be no more exploration.
The fear of banning petroleum goods due to the lack of exploration is the cause of the high costs, according to Museveni, who also noted that even if the war ends, the prices are likely to stay high.
Today, a liter of gasoline costs between 6500 and 7000 Shillings. (Fuel – Subsidies – and Tax Cuts Have No Hope After President Museveni’s Speech – celebrity jazz ug)