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TransNamib bulk fuel rate to increase for the first time in 4 years – July fuel prices to increase

TransNamib bulk fuel rate to increase for the first time in 4 years – July fuel prices to increase

The Ministry of Mines and Energy decided to grant a 10c/l increase in the rail rate of TransNamib, effective 4 July, which in turn will see the fuel pump prices increase countrywide.

This is the first time since 2015 that TransNamib’s bulk fuel price rail rate will be adjusted, following a request made by the company.

The rail operator requested for the adjustment in order to stay on par with the annual inflation and to execute its plans of giving more fuel runs to various towns around the country.

Meanwhile, the ministry announced a nationwide fuel pump price increase on 4 July, with the exception of Walvis Bay pump prices, which will remain unchanged, because the TransNamib rail rate does not apply to it.

“During the month of June, oil companies paid more for importing fuel into the country than they were being compensated for at the pump. This led to significant short falls due to them warranting an increase of fuel pump prices,” Tom Alweendo, the minister of mines and energy said.

Alweendo said that times are tough, adding that oil prices are the cornerstone of the global economy in that it is not just a cost at the pump to motorists, but also a cost factor in the price of numerous other commodities.

“The National Energy Fund will subsidize for every cent due to oil companies that would otherwise have triggered a price increase,” Alweendo added.

The ministry has thus decided to increase the Ondangwa pump prices and all localities that are supplied from the town as follows; 95 Octane Unleashed Petrol (-20c/l increase) and All Diesel Grades (-19c/l increase.)

About The Author

Donald Matthys

Donald Matthys has been part of the media fraternity since 2015. He has been working at the Namibia Economist for the past three years mainly covering business, tourism and agriculture. Donald occasionally refers to himself as a theatre maker and has staged two theatre plays so far. Follow him on twitter at @zuleitmatthys