Cabinet approves fuel price increase

FUEL prices will go up by 35 cents a litre on Monday, a source in the Ministry of Mines and Energy confirmed yesterday.

It is the fourth fuel price increase this year. The new pump prices at Walvis Bay will be N$5,94 for a litre of unleaded petrol, N$5,92 a litre for lead-replacement petrol and N$6,00 a litre for diesel.Pump prices further inland are higher than at the coast, which means that motorists in most parts of Namibia will pay more than N$6 for a litre of fuel.Currently, a litre of unleaded petrol in Windhoek costs N$5,76.From Monday, motorists will have to fork out N$6,11.Harald Schmidt of the Namibia Oil Industry Association confirmed that his organisation, representing all major oil companies, had received a notification from the Ministry of Mines and Energy yesterday that pumps should be adjusted to reflect the new prices at 00h01 on Monday.Volatile international oil prices have been the major cause of the recent spate of price hikes.The high oil prices have also pushed Namibia’s inflation rate up.The monthly inflation for June stood at 0,4 per cent, up from 0,3 per cent recorded in May.June’s annual inflation rate was 5,3 per cent, compared to 1,3 per cent in June last year.Consumers interviewed by The Namibian yesterday said the fuel price increase would definitely have a ripple effect and would soon lead to an increase in the cost of living.A bookkeeper at a small design firm in Klein Windhoek said life was becoming tough for her, as she had a child to look after and rent to pay, yet despite all the increases in the cost of food, rent, transport and others services, her salary had remained the same since January.Users of public transport would be relieved to hear that the Namibia Bus and Taxi Association (Nabta) says it will not increase public transport fares, as a 10 per cent fare hike was announced last month after the third fuel price increase.Nabta President Magnus Nangombe said his association had more to take into account and consider, and would not necessarily increase fares just because fuel prices were going up.”We are definitely not increasing our fares.We are not even dreaming of it, the nation can be assured of that.We increase our fares when we realise that we are lagging behind,” said Nangombe.The new pump prices at Walvis Bay will be N$5,94 for a litre of unleaded petrol, N$5,92 a litre for lead-replacement petrol and N$6,00 a litre for diesel.Pump prices further inland are higher than at the coast, which means that motorists in most parts of Namibia will pay more than N$6 for a litre of fuel.Currently, a litre of unleaded petrol in Windhoek costs N$5,76.From Monday, motorists will have to fork out N$6,11.Harald Schmidt of the Namibia Oil Industry Association confirmed that his organisation, representing all major oil companies, had received a notification from the Ministry of Mines and Energy yesterday that pumps should be adjusted to reflect the new prices at 00h01 on Monday.Volatile international oil prices have been the major cause of the recent spate of price hikes.The high oil prices have also pushed Namibia’s inflation rate up.The monthly inflation for June stood at 0,4 per cent, up from 0,3 per cent recorded in May.June’s annual inflation rate was 5,3 per cent, compared to 1,3 per cent in June last year.Consumers interviewed by The Namibian yesterday said the fuel price increase would definitely have a ripple effect and would soon lead to an increase in the cost of living.A bookkeeper at a small design firm in Klein Windhoek said life was becoming tough for her, as she had a child to look after and rent to pay, yet despite all the increases in the cost of food, rent, transport and others services, her salary had remained the same since January.Users of public transport would be relieved to hear that the Namibia Bus and Taxi Association (Nabta) says it will not increase public transport fares, as a 10 per cent fare hike was announced last month after the third fuel price increase.Nabta President Magnus Nangombe said his association had more to take into account and consider, and would not necessarily increase fares just because fuel prices were going up.”We are definitely not increasing our fares.We are not even dreaming of it, the nation can be assured of that.We increase our fares when we realise that we are lagging behind,” said Nangombe.