The continued rise in fuel prices and taxes is piling pressure on wholesalers and traders in Kampala, with many now struggling to sustain their businesses amid escalating transport and operational costs.

Rice traders operating at Nakayiza Building in Kisenyi say the situation has forced them to increase commodity prices, raising fears of reduced customer turnout and a higher cost of living for ordinary Ugandans.

Our reporter now brings us the voices of wholesalers calling for urgent government intervention to stabilize the business environment.

Uganda’s economy remains heavily dependent on imported fuel and goods, making businesses vulnerable to global economic shocks and disruptions in international supply chains.

According to officials in the energy sector, the country imports nearly all its petroleum products through regional transit routes, meaning fluctuations in global fuel prices quickly translate into higher transport costs and commodity prices locally.

In recent years, tensions in the Middle East, one of the world’s leading oil-producing regions, have continued to affect global fuel markets, contributing to rising fuel prices across East Africa.

At the same time, the increasing cost of living has continued to affect both traders and consumers, with food prices and transport costs remaining among the leading drivers of inflation.

Rice wholesalers at Nakayiza Building now say the pressure is steadily eroding profits and weakening consumers’ purchasing power.

Mr. Ssali Bumali, a rice wholesaler, says transport costs from the Tanzania border into Uganda have sharply increased due to high fuel prices, forcing traders to spend more on logistics.

He says traders have been left with no option but to adjust commodity prices in order to keep their businesses operational.

Ssali further notes that heavy taxes on imported commodities have worsened the situation, creating price instability within the market.

He has appealed to the government to reduce taxes and strengthen Uganda’s fuel reserve capacity to cushion the country against global supply disruptions.

Another trader, Ms. Wasse Fatumah, says rising fuel costs have directly affected both importation and distribution of rice, forcing traders to increase prices during what would normally be a peak business season.

She says the increasing operational costs have reduced customer turnout despite continued demand for essential commodities.

Meanwhile, Mr. Abed Ramathan Musoga says traders are increasingly facing pressure from customers demanding lower prices even as wholesalers struggle with rising expenses.

He attributes the current economic strain partly to global conflicts affecting fuel supply and transport costs across the region.

Traders now warn that unless urgent measures are taken to stabilize fuel prices and reduce taxes, many small and medium-scale businesses could continue facing financial difficulties, ultimately affecting the affordability of essential food commodities for ordinary Ugandans.