Consumers to brace for a fuel price surge in May
In a move anticipated to impact consumers, the Ministry of Mines and Energy declared significant hikes in petrol and diesel prices last Friday, effective from 2 May.
Petrol will witness a sharp spike of 70 cents per litre, while diesel variants will climb by 40 cents per litre.
Under the adjusted rates, petrol will soar to N$23 per litre, with diesel 50 ppm closely trailing at N$22.17, and diesel 10 ppm nudging slightly higher to N$22.37 per litre.
The ministry in a statement, assured that fuel prices across all regions of the country would be adjusted accordingly following these changes.
Highlighting Namibia’s susceptibility to fluctuations in international oil market prices, the ministry acknowledged limited flexibility to shield against such impacts. Nonetheless, they reaffirmed their commitment to managing the situation, ensuring fuel supply security while maximizing the National Energy Fund’s capacity to stabilize fuel prices sustainably.
“The National Energy Fund will absorb the remaining under-recoveries, partially alleviating the burden on consumers,” the ministry added.
Furthermore, the ministry opted to extend the temporary relief margin of 20 cents per liter granted to oil importers for an additional six months.
“This extension will persist until a review of the relief margin or the implementation of the Petroleum Import Coordination System, whichever comes first,” the ministry stated.
According to the ministry, global crude oil prices maintained an upward trajectory throughout March and April, propelled by heightened geopolitical tensions in Eastern Europe and the Middle East.
Notably, supply-side disruptions in refineries in various parts of the world continue to linger, contributing to market uncertainty and pushing oil prices globally.
