MPs to Receive Shs42billion Fuel Refund

The government has approved and released a sh42 billion fuel refund for Members of Parliament (MPs), which they have been requesting for the past three years. This week, MPs will receive the compensation in their bank accounts for the increased fuel prices they have faced since the start of the 11th Parliament in May 2021.

Refund Estimates

The mileage allowance each MP receives varies depending on the distance from Kampala to their constituencies. It is estimated that each MP will receive between sh75 million and sh90 million. The highest amount is expected to go to the MP from Zombo district, estimated at around sh90 million. MPs typically receive monthly mileage allowances ranging from sh15 million to sh40 million, with higher amounts for those representing larger constituencies or special interest groups such as national youth MPs, workers’ MPs, and representatives of persons with disabilities.

These allowances are based on the expectation 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The Parliamentary Commission approved the fuel refund last year in response to MPs’ concerns about outdated mileage allowance rates, which were based on the old pump price of sh3,600 per litre set during the 10th Parliament.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 risen significantly, with petrol now costing between sh5,100 and sh5,430 per litre and diesel between sh4,500 and sh4,980 per litre.

The commission decided to adjust the mileage allowances to reflect current fuel prices, with approval from the President.

A source from 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 indicated that payments would be made once the finance ministry disburses the funds.

Responding to concerns from MPs about delayed payments, Obore urged them to also inform the media when they receive their funds.

Previous Instances

This is not the first time Parliament has issued a fuel refund to MPs. In 2016, each member of the 9th Parliament received over sh100 million in fuel refunds.

It is unclear whether MPs who use government vehicles and fuel due to their official roles, such as ministers, will also receive this refund.

The source noted that all MPs’ allowances were supposed to be disbursed along with their salaries 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.

Obore reiterated his request for MPs to notify the media not only about payment delays but also when they receive their funds and the amounts.