Fuel price hike unfortunate, but unavoidable, says the NCCI

THE Namibia Chamber of Commerce and Industry (NCCI) has said that today’s fuel price increase although unfortunate, was unavoidable because of recent international trends.

The Minister of Mines and Energy, Dr Nickey Iyambo, last week announced an increase in the prices of petrol and diesel, to more than N$4, 00 for a litre of fuel. Chairperson of the NCCI Economic Affairs Standing Committee, Rainer Ritter, attributed the fuel price increase to the recent hikes in the crude oil prices internationally and also price increases in South Africa – Namibia’s major trading partner.”This latest fuel price increase will definitely make an impact on inflation and transport costs will also rise, including that costs of consumer goods coming from South Africa will also go up,” said Ritter.However, he said, the increase in inflation would not be substantial.He estimated it would pick up by around 0,2 per cent, but added that ordinary consumers would be hardest hit with the increases in transport fares and subsequently food prices.According to the Standard Bank Economics Division – forecast on selected African economies updated last week – Namibia’s consumer inflation forecast stood at 3,8 per cent.Ritter added that there would probably be wage and salary increases at the end of the year, by which time he said, consumers would have felt the impact of the price hike.Ritter also said this fuel price hike would definitely have a significant impact on industries like mining and fisheries that depended on petrol and diesel and on the export market.Chairperson of the NCCI Economic Affairs Standing Committee, Rainer Ritter, attributed the fuel price increase to the recent hikes in the crude oil prices internationally and also price increases in South Africa – Namibia’s major trading partner.”This latest fuel price increase will definitely make an impact on inflation and transport costs will also rise, including that costs of consumer goods coming from South Africa will also go up,” said Ritter.However, he said, the increase in inflation would not be substantial.He estimated it would pick up by around 0,2 per cent, but added that ordinary consumers would be hardest hit with the increases in transport fares and subsequently food prices.According to the Standard Bank Economics Division – forecast on selected African economies updated last week – Namibia’s consumer inflation forecast stood at 3,8 per cent.Ritter added that there would probably be wage and salary increases at the end of the year, by which time he said, consumers would have felt the impact of the price hike.Ritter also said this fuel price hike would definitely have a significant impact on industries like mining and fisheries that depended on petrol and diesel and on the export market.