SADC Correspondent | Oct 30, 2018 | 0
Fuel increases for the fourth consecutive month – National Energy Fund absorbs the bulk of under-recoveries
The Ministry of Mines and Energy announced that fuel pump prices increased on all petroleum products this week, starting on 5 September.
The new fuel pump prices in Walvis Bay will be: 95 Octane Unleaded Petrol N$12.95 per litre, Diesel 500ppm and Diesel 50ppm will be N$13.33.
The ministry on Tuesday at a media brief in Windhoek confirmed that the major contributing factor to this month’s increment is the depreciating exchange rate between the Namibian Dollar against the US Dollar during the course of August.
The Deputy Minister of Mines, Kornelia Shilunga told the media the value of the adjustment is done with the assessment of the National Energy Fund (NEF) account balance. The mandate of the
NEF among others is Energy Price Equalization.
It is the fourth consecutive monthly fuel price increase for the country except for Walvis Bay, which was spared the adjustment in the transportation cost in July.
According to the ministry by increasing fuel pump prices, it is not the intention of government or petroleum product suppliers or fuel station owners to generate more income, but to recover the cost already incurred by bulk oil importers to bring fuel to Namibia.
Shilunga said the ministry will however continue to monitor oil prices in the international market and make informed decisions ensuring that consumers are not negatively impacted by the required fuel adjustments.
Economic Association of Namibia, Research Associate Klaus Schade said motorists therefore need to prepare for further fuel price increases.
“The fuel price hike combined with the increase in taxi fares will push up transport inflation in September and hence the overall inflation rate,” he added.
According to him the price increases can encourage a more efficient use of transport equipment, the switch to more fuel-efficient equipment or the shift to equipment fuelled by other forms of energy, such as batteries.