Price of Cooking Oil Soars, Restaurants Cry Foul

Comments 1220 Views Kampala, Uganda
The price of cooking oil has soared significantly despite the calm in Kenya.
The price changes were first noticed at the height of the political crisis in Kenya.
According to Abdul Kader Sangam, the Mukwano Chief Sales and Marketing Manager, the post election violence in Kenya created a shortage of palm oil, a by-product used to make edible cooking oil.
The situation was even made worse by transporters who feared to risk exposing their trucks to violent mobs between Malaba border and the Kenyan port of Mombasa.
A survey carried out by Uganda Radio Network, found out that the price of a 20-litre jerrican of Roki cooking oil, a product of Mukwano group of companies shot up from 64,500 shillings to 70,500 shillings in less than one week.
While the price of Mukwano cooking oil another brand of Mukwano industries has soared to 80,000 shillings.
But several traders in Kikubo, Kampala's central business wonder why cooking oil prices have failed to stabilize. Some traders say they have stopped purchasing new stocks of Mukwano cooking oil, because the profits have become minimal.
Abdul Kader Sangam, the Chief Sales and Marketing Manager, Mukwano group of companies, blames the soaring cooking oil prices on the increasing palm oil prices on the world market. He also says that the increase in the price of cooking oil could be attributed to transport costs, coupled with the depreciating value of Ugandan shilling.
The increase in the price of cooking oil has affected mainly restaurants and confectionaries, which are already grappling with the high cost of wheat and other bakery products.
Ahmed Ali, the Manager of Rinmo bakery and restaurant along Luwum Street in Kampala admits that the increase in the price of cooking oil has greatly affected his profit margins.
Rinmo bakery uses large quantities of cooking oil for preparing snacks which are a big attraction to the customers.
But Ali says an effort to increase the price of his snacks is proving difficult because the customers instead end up abandoning his shop, for cheaper snacks elsewhere.
//Cue in: iThe price is too#
Cue out: #at the moment.i//

 

Tagged with: cooking oil

Comments