The leader of National Economic Empowerment Dialogue (NEED), Joseph Kabuleta has said that the control of oil exportation, importation and distribution should not be left to one or two individuals to monopolize as it goes against market forces.
Kabuleta while speaking on the state of the nation on a national Television on November 13, 2023, said that, monopolies contribute to market failure because they limit efficiency, innovation and a healthy competition.
“You cannot buy fuel without middle men because they are a necessary evil. Doing monopoly on fuel will put middle men out of market. Fuel has been high, but at least driven by market forces. But now, someone wants to monopolize it, “Kabuleta said.
Kabuleta stated that, market forces have ability to affect change on the market by determining the price and quantity of a good or service in a market, adding that, the market forces occur naturally in a free market economy and are controlled by government intervention.
He noted that, people within President Museveni’s government are looking for where to place their fingers, and are addicted to monopoly where some don’t even pay taxes, but get into business, and once they find it profitable, they kick others out.
“I don’t think Parliament will be able to stop this fuel deal because it has higher interests involved. Museveni is going against long-serving system that has shown that market forces are the best,” Kabuleta said.
This follows the Bill’s proposal to make the Uganda National Oil Company (UNOC) a monopoly in the importation of petroleum products. UNOC will as well import automotive gasoline or super petrol, automotive gasoline or diesel, jet A-1 and dual purpose Kerosene.
