The energy ministry will increase the price of fuel for both diesel and petrol for September, due to volatile international oil markets and an increase in road levies.
Petrol prices will increase by 60 cents per litre to N$25.08, effective Wednesday, September 2.
Diesel prices will increase by N$1.60 per litre, making the cost of diesel 10ppm N$27.86 per litre and the cost of diesel 50ppm N$27.96 per litre.
The fuel price increases were announced on Friday by energy minister Modestus Amutse after the monthly fuel price review.
“International oil markets remained volatile during the review period, with continued geopolitical tensions in the Middle East and persistent disruptions to crude oil flows through the Strait of Hormuz keeping global oil supply and shipping conditions under pressure,” Amutse said.
According to the ministry’s calculations, the cost of diesel increased by 11% and the cost of petrol by 5.7%.
The fuel pricing model recorded under-recoveries for diesel 10ppm, diesel 50ppm and petrol.
Amutse said in addition to making up for these under-recoveries, the ministry is increasing the road user charge levy by 30 cents per litre.
“This adjustment is necessary to fund the implementation of the national priority feeder road projects,” Amutse said.
The levy increases from 243 cents to 273 cents per litre.
