Another fuel price hike hits Nam

FUEL prices are going up today, with petrol increasing by 12 cents a litre, while diesel will be hiked by a whopping 52 cents per litre, the Ministry of Mines and Energy announced yesterday.

Today’s increase will see new Walvis Bay pump prices at N$7,03 per litre of 95-octane unleaded petrol, N$7,01 for a litre of 93-octane lead replacement petrol (LRP) and N$7,22 for a litre of diesel. Pump prices at inland service stations across the country will be adjusted accordingly.This is the first hike since July and it comes as no surprise, as the Bank of Namibia last week warned of an imminent petrol price hike, as reported by The Namibian.Namibians have been spared any increases since July, while petrol prices in South Africa have increased continually.Namibia imports its fuel from South Africa, and decisions made in that country usually have a ripple effect locally.Minister Erkki Nghmitina said the ever-volatile crude oil prices were again the driver of the latest increases.”In the past two months, diesel prices struck new record levels internationally and are set to rise further.”The diesel prices have been soaring due to the looming seasonal demand for heating oil in the northern hemisphere.This has left us with no alternative other than to pass on the increased costs to the consumers,” he said.Heating oil, used to fuel central-heating systems in the northern hemisphere, is identical to diesel.The Minister also said the high international oil prices, which are hovering around record prices of US$90 (N$603) per barrel, have led to an under-recovery from Namibian pump prices.After today’s increase, unleaded petrol and LRP are 3,6 per cent and 1,9 per cent higher in South Africa than in Namibia, but diesel costs 2,16 per cent more here than in South Africa.As a warning to consumers to be prepared for any eventuality after the festive season, Nghimtina said: “The Ministry will harmonise fuel prices with neighbouring states to be fair in respect of pricing mechanisms used.”In a politically volatile world, Namibian consumers are forewarned that they will have to prepare for unanticipated changes due to volatility in oil prices.”Pump prices at inland service stations across the country will be adjusted accordingly.This is the first hike since July and it comes as no surprise, as the Bank of Namibia last week warned of an imminent petrol price hike, as reported by The Namibian.Namibians have been spared any increases since July, while petrol prices in South Africa have increased continually.Namibia imports its fuel from South Africa, and decisions made in that country usually have a ripple effect locally.Minister Erkki Nghmitina said the ever-volatile crude oil prices were again the driver of the latest increases.”In the past two months, diesel prices struck new record levels internationally and are set to rise further. “The diesel prices have been soaring due to the looming seasonal demand for heating oil in the northern hemisphere.This has left us with no alternative other than to pass on the increased costs to the consumers,” he said.Heating oil, used to fuel central-heating systems in the northern hemisphere, is identical to diesel.The Minister also said the high international oil prices, which are hovering around record prices of US$90 (N$603) per barrel, have led to an under-recovery from Namibian pump prices.After today’s increase, unleaded petrol and LRP are 3,6 per cent and 1,9 per cent higher in South Africa than in Namibia, but diesel costs 2,16 per cent more here than in South Africa.As a warning to consumers to be prepared for any eventuality after the festive season, Nghimtina said: “The Ministry will harmonise fuel prices with neighbouring states to be fair in respect of pricing mechanisms used.”In a politically volatile world, Namibian consumers are forewarned that they will have to prepare for unanticipated changes due to volatility in oil prices.”