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The shilling yesterday strengthened by shs 20 against the American dollar trading at 2570/2490 in the local foreign exchange market. Dealer’s attributed the local currency’s gain to low demand amidst stable supply from commercial banks.

The government has no plan to cap fuel prices, according to the 2012/2013 Budget framework. “Any attempt to intervene by capping fuel prices can lead to shortages, and /or the development of a black market.” the framework reads in part. This follows consumer pressure on the government, pushing for the control of the increasingly volatile pump prices. Throughout last year and the better part of this year, Ugandans have suffered with high fuel prices with a liter of petrol going for an average of shs 3,600.Last year the Kenyan government set a price ceiling on fuel products as it sought to curb the escalation in the cost of doing business. However, Uganda continues to leave the fate of fuel prices to market forces, whose stability largely depends on the international oil price and the movement of the exchange rate.