Fuel price to go up for third consecutive month
Motorists will have to pay more for fuel in November, following the decision by the Ministry of Mines and Energy to increase the price of petrol by 50c/l and 70 c/l for diesel.
This will bring the price of petrol to N$ 14.95 per litre and N$14.88 per litre for diesel. In October, the prices for both petrol and diesel increased by 30c. A month earlier, the price of the prices of petrol increased by 60 cents per litre and diesel by 30 cents per litre.
The ministry cites the increased global demand for oil and the depreciation of the Namibia Dollar against the US Dollar, which led to an increased under-recovery in the basic fuel price.
According to the latest calculations, there is an under-recovery of 132 cents on petrol and an under-recovery of 154 cents on diesel.
“There is, therefore, a need to ensure that a fuel price that is reflective of the movements of the market is maintained to ensure the security of fuel supply to the country,” ministerial spokesperson Andreas Simon said.
Simon said the National Energy Fund will cover the entirety of the under-recoveries recorded for the month of October 2021 on behalf of fuel consumers through the fuel equalization levy. This amounts to approximately over N$120 million.
“The Ministry would also like to remind the public that Namibia is a price-taker in the international oil market. In other words, the country does not yet have crude oil resources and crude oil refineries of its own through which it can hedge against these oil price volatilities apart from the National Energy Fund fuel equalization mechanism,” Simon explained.
