Fuel price increases expected

FUEL prices are likely to increase by between 33 cents per litre and 41 cents per litre next week.

The latest state calculations for Namibia show that Government under-recovered 37 cents per litre on unleaded petrol (95 ULP) and 33 cents per litre on 93 ULP and lead replacement petrol (LRP) in June. The under-recovery for diesel during the month was 41 cents per litre.An under-recovery means that the basic fuel price, based on the daily product price and exchange rate, is more than the basic fuel price used when the Ministry of Mines and Energy (MME) decided on the pump prices at the beginning of June. As such, it usually indicates more expensive fuel.Should MME Minister Erkki Nghimtina give the green light for the increase, it will be the fourth hike in the petrol price since January. So far, petrol has become 96 cents per litre more expensive.However, it will only be the second time the diesel price has been pushed up. Up to now, the diesel price has only been increased in April, when it climbed by 13 cents a litre.South Africa last week also increased their fuel prices. Diesel became 40 cents per litre more expensive, while the price of 95 ULP shot up by 40 cents a litre and that of 93 ULP and LRP by 37 cents per litre.jo-mare@namibian.com.na