Fuel price increases to hit at midnight

Fuel prices will increase again at midnight on Friday, due to sustained increases in international oil prices caused by conflict in the Middle East.

Energy minister Modestus Amutse announced the price increases on Thursday, saying that petrol will increase by N$1.40 to a price of N$23.38 per litre and diesel 50 ppm will increase by N$4.63 to a price of N$28.26 per litre.

Diesel 10ppm will also increase by N$4.63 per litre for a new price of N$28.36 per litre.

“Namibia imports all its refined petroleum products and, therefore, remains exposed to international oil market volatility and global supply chain disruptions,” Amutse said.

The minister said geopolitical tensions in the Middle East have disrupted global oil markets, leading to higher international crude oil prices and increased shipping costs.

In addition, higher insurance prices for shipments and a fluctuating exchange rate with the United States dollar have put significant pressure on the price of importing fuel.

Over the month of April, the under-recoveries – i.e. the difference between the cost of importing fuel and the cost paid by consumers – were N$2.81 per litre for ULP95, N$9.74 per litre for diesel 50ppm and N$9.68 per litre for diesel 10ppm.

“To minimise the burden on consumers, the government, through the NEF Fuel Price Equalisation Fund administered by the National Energy Fund, will absorb a substantial portion of the cumulative under-recoveries and associated fuel import premiums,” Amutse said.

He said the government aimed to cushion the impact of increased prices on consumers through the energy fund and a reduction in fuel levies.

A three-month 50% cut in fuel levies was announced in April, which will continue to run until the end of June.

Amutse said there was no need to panic buy fuel, as the country has enough fuel supply for the next three months.

“The ministry wishes to reassure the public that Namibia currently holds adequate fuel stocks and continues to receive scheduled fuel imports through various international supply arrangements,” he said.

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