No fuel price increases

By: CHRISTOF MALETSKY

GOVERNMENT has kept its promise to keep fuel prices as low as possible despite the rising crude oil prices, by announcing its decision to roll over the prevailing fuel pump prices until next month.

Minister of Mines and Energy Dr Nickey Iyambo has also announced

that fuel prices will now be reviewed on a monthly basis due to the

volatility of international crude oil prices.

The last review was done in October, when the Ministry of Mines

and Energy decided not to hike fuel prices before the end of the

year.

 

Iyambo said the international crude oil and petroleum product

prices had decreased substantially since the last announcement.

 

However, the prices remain volatile and have started to pick

up.

 

At the end of December 2004, some unit over-recoveries were

realised on both petrol and diesel prices.

 

Iyambo said that was in addition to the stronger Namibia dollar

/ US dollar exchange rate, which cushioned and absorbed a great

portion of the crude oil costs.

 

"This will definitely benefit the transport-driven economy, the

fishing sector and the farmers, taking into account that the

ploughing season has started," said Iyambo.

 

With the change from quarterly to monthly reviews, the Ministry

is trying to "reach an understanding with consumers".

 

Iyambo said earlier that reviewing fuel prices on a monthly

basis will afford the Government a chance to pass on price

fluctuations to the consumer faster, instead of letting them

accumulate for three months.

 

Last July, the prices of petrol and diesel increased by eight

per cent to more than N$4 for a litre of fuel.

 

The last review was done in October, when the Ministry of Mines and

Energy decided not to hike fuel prices before the end of the

year.Iyambo said the international crude oil and petroleum product

prices had decreased substantially since the last

announcement.However, the prices remain volatile and have started

to pick up.At the end of December 2004, some unit over-recoveries

were realised on both petrol and diesel prices.Iyambo said that was

in addition to the stronger Namibia dollar / US dollar exchange

rate, which cushioned and absorbed a great portion of the crude oil

costs."This will definitely benefit the transport-driven economy,

the fishing sector and the farmers, taking into account that the

ploughing season has started," said Iyambo.With the change from

quarterly to monthly reviews, the Ministry is trying to "reach an

understanding with consumers".Iyambo said earlier that reviewing

fuel prices on a monthly basis will afford the Government a chance

to pass on price fluctuations to the consumer faster, instead of

letting them accumulate for three months.Last July, the prices of

petrol and diesel increased by eight per cent to more than N$4 for

a litre of fuel.

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