Fuel transport levy to increase
Fuel pump prices has decreased this week again by 1.20 cents wholesale amidst an increase in fuel transport levy.
The Ministry of Mines and Energy announced this week that transport levy will increase by 10 cents per litre on all petroleum products at the request of TransNamib Holdings.
According to the Ministry the increase was justified by the cost of doing business going up.
Supply and demand logic does little in explaining the current global price of crude oil falling below US$50 per barrel.
“The supply of oil has increased sharply in recent months, mainly because of the prolific production of shale oil in the United States, thanks to the technologies of fracking and horizontal drilling,” the Minister of Mines and Energy Isack Katali said.
Current 95 octane Unleaded Petrol sells at N$9.59 per litre while Diesel 500 ppm will sell at N$9.82 with diesel 50 ppm also reducing to N$9.92 per litre.