Energy Ministry wants to soften burden on consumers amid new fuel price hike
The Ministry of Mines and Energy announced that it is in consultation with the Finance Ministry and other stakeholders to reduce some taxes and levies on petroleum products, following the announcement that petrol prices will increase to N$19.10 and N$20.23 for diesel next week.
Effective from 06 April petrol prices will increase by N$1.95c per litre, while diesel increases by N$2.95c per litre, bringing the local retail fuel price to its highest ever.
In a bid to ease the burden on consumers, the Deputy Minister of Mines and Energy, Kornelia Shilunga on Thursday 31 March said the ministry has initiated a consultative process with the finance ministry and other state institutions that derive revenue from taxes and levies imposed on the price of petroleum products. The consultations explore the possibilities of reducing some of these taxes and levies.
“The consultations are currently at a very advanced level and are expected to be finalised in April 2022,” Shilunga said.
Shilunga further said the country is facing a tough and uncertain situation over the coming month’s given global events, particularly the Russia-Ukraine conflict.
“Moving forward, great financial sacrifices will have to be made at both the individual and the collective level, because it is the only way we will be able to overcome the current difficulties,” Shilunga stressed.
Meanwhile, the Namibia Dollar slightly gained value against the US Dollar in March 2022, however, it was not significant enough to offset the sharp increase in fuel products during the month.
The ministry recorded huge under-recoveries in the last trading cycle, that is N$2.20 per litre on petrol and N$3.59 on diesel per litre. The National Energy Fund will cover all the under-recoveries on behalf of consumers at a cost of approximately N$390 million.