Members of Parliament (MPs) have a reason to smile as the government has finally approved and released the sh42 billion fuel refund they have been demanding for the last three years.
This week, MPs will see this refund deposited into their bank accounts as compensation for the increased fuel prices they have faced since May 2021, when the 11th Parliament commenced.
Refund Estimates
While the mileage allowance each MP receives varies based on the distance from Kampala to their respective constituencies, it’s estimated that each legislator will receive between sh75 million and sh90 million.
The highest amount will go to the MP from Zombo district, who will receive around sh90 million. Generally, MPs receive monthly mileage allowances ranging from sh15 million to sh40 million, with higher amounts allocated to representatives of larger constituencies and special interest groups such as national youth MPs, workers’ MPs, and representatives of persons with disabilities.
These allowances are based on the assumption that MPs travel to and from their constituencies at least twice a week.
Parliament’s Approval
The Parliamentary Commission approved the fuel refund last year, acknowledging the MPs’ complaints about the outdated mileage allowance rates, which were based on the old pump price of sh3,600 per litre set during the 10th Parliament.
Since then, fuel prices have surged to over sh5,000 per litre. As of yesterday, petrol prices ranged between sh5,100 and sh5,430 per litre, while diesel was between sh4,500 and sh4,980 per litre.
The commission agreed to adjust the mileage allowances based on current fuel prices, with the approval of the President.
A highly placed source at Parliament confirmed that MPs would receive their fuel arrears along with other allowances this week. Chris Obore, Parliament’s Director of Communication and Public Affairs, confirmed the arrears and stated that payments would be made as soon as the finance ministry provides the funds.
Responding to MPs’ complaints about delayed payments, Obore urged them to also inform the media when they receive their funds.
Not the First Time
This is not the first instance of Parliament paying MPs a fuel refund. In 2016, each member of the 9th Parliament received over sh100 million in fuel refunds.
It remains unclear whether MPs who use government vehicles and fuel due to their official roles, such as ministers, will also receive this refund.
The source indicated that all MPs’ allowances should have been disbursed along with their salaries for this month. However, due to a budget shortfall of over sh80 billion in the first quarter of the 2023/24 financial year, only salaries were paid by last Friday, with allowances pending.
Parliament had hoped to address this shortfall but was constrained by limited releases from the finance ministry.
Obore reiterated his request for MPs to inform the media not only of payment delays but also when they receive their funds and the amounts received.
