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Declaration of Ondangwa as a Fuel Pricing Town pushes diesel pump prices up

Declaration of Ondangwa as a Fuel Pricing Town pushes diesel pump prices up

The Ministry of Mines and Energy on Monday announced that diesel pumps prices will increase as from Wednesday 2 May, but the petrol prices will remain unchanged.

According to the Minister of Mines and Energy, Hon. Tom Alweendo, the new rail rate applicable to Ondangwa warrant and adjustment of 9c/l and 10c/l for diesel and petrol respectively in the Ondangwa fuel price build up.

“It is for this reason that the ministry has decided to increase the diesel rail rate in the build up Ondangwa by 9c/l effective from the 2 May,” he added.

Ondangwa was declared a pricing town in April, 2018, and the cost implications was that the transport cost of fuel to Ondangwa, on the rail. From Walvis Bay in the price build had to be adjusted, from the rates applicable to Tsumeb – where all the northern towns were supplied from – to Ondangwa; where the aforementioned towns will now be supplied with fuel from.

Meanwhile in a separate announcement, the ministry said that Diesel 500 ppm will be phased out on the market with effect from next year.

The Ministry in a statement said that the diesel 500ppm will be phased out of the market with effect from 01 January 2019 and introduce 10ppm sulphur diesel (low sulphur emission).

“And all industry players have been advised to put measures in place to ensure a smooth process that will not disadvantage the consumer,” the statement read

The introduction of the low sulphur diesel is meant to reduce global warming and reduce CO2 emissions of which most countries globally are moving in this direction.

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