The government announced new tax amendments for the financial year 2021/2022, including an increase in the tax per litre of fuel by UGX 100. The new tax consequently led to a rise in pump prices with a litre of petrol and diesel now, trading at an average of UGX 4,150, and UGX 3,710 respectively. The increased fuel prices will translate to a higher cost of business operations, especially in transporting raw materials and delivering finished goods to the market.

With movement restrictions lifted and the lockdown eased, businesses must make decisions to help manage fuel costs to sustain their business models. Here are some countermeasures that companies can use to minimize costs associated with the rise in fuel prices.

Examine fuel efficiency

If your business involves transportation, review the various elements that affect fuel efficiency. For instance, consider streamlining routing and dispatching. Shorter routes and better-informed drivers ensure less fuel consumption. Make deliveries when traffic is minimal, using the most direct routes, to avoid wastage of driver time or fuel.

Stay on top of maintenance

Vehicle maintenance can have an enormous impact on fuel efficiency. For instance, dirty engines use more fuel. At the same time, tyres that are worn or are at an incorrect pressure can negatively affect how quickly a vehicle accelerates, resulting in greater expenditure of fuel. Ensure regular car maintenance to improve fuel efficiency.

Plan ahead 

Consider the effect of price changes during the budgeting process. Consider offsetting rising prices by increasing the number of products or raw materials purchased at one time. For example, the company can reduce the frequency of purchases from thrice a week to once a week, thus reducing transportation costs.


These strategies can be used to help your bottom line and to avoid passing costs on to customers.