An examination of the regulatory regime for oil prices in the downstream sector in Uganda

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Kampala International University, School of Law.
Uganda liberalized the downstream petroleum sector in 1994. It was believed that by opening up the sector and letting the Industry manage and sustain itself the benefits of a regulated industry with open market operations and competition would translate into low prices and benefits the people. Price determination Is far from being determined by market forces. This fettle success has been overshadowed by failure to realize a competitive market that would have resulted into low domestic oil products prices. This collusive pricing structure has resulted into increasingly high domestic retail prices. This structure has been sustained by low price elasticity of market demanc4 high concentration and lack of an effective and appropriate legal and institutional regulatory framework. However, Uganda still has opportunities to realize the full benefits of deregulation if the necessary infrastructure can be established. Petroleum products are used across the entire economy in every country. Gasoline and diesel are the primary fuels used in road transport Oil Is used in power generation, accounting for 11 percent of total electricity generated in Africa in 2007 Adequate and reliable supply of transport services and electricity in turn are essential for economic development. Households use a variety of petroleum products: kerosene for lighting, cooking, and heating; liquefied petroleum gas (LPG) for cooking and heating; and gas online and diesel for private vehicles as well as captive power generation. In addition to the above higher oil prices increase the prices of all other goods that have oil as an intermediate input. The most significant among them for the poor in low-income countries Is food, on which the poor spend a disproportionately high share of total household expenditure are food prices increase. This led into a protest of walk to work by A4C(Activist 4 Change) now known as 4CC (For God and my country) in Uganda in September 2010 and march 2011.
A dissertation thesis Presented to the College of Higher Degrees and Research Kampala International University Kampala, Uganda In Partial Fulfillment of the Requirements for the Degree of Master of laws (General)
Oil prices, Downstream