KaDezember blues as fuel price shocks continue

CHARMAINE NGATJIHEUE and SHANTE MAHALIE

THE impact of the eighth fuel price hike for the year, which sees another 70 cents being added to the price of diesel and petrol per litre, is expected to be felt across the economic value chain.

From Wednesday, 1 December, petrol pump prices at Walvis Bay (port of entry) will be N$15,65 cents a litre, and diesel prices N$15,58 cents a litre.

Fuel pump prices countrywide will be adjusted accordingly.

Economist Omu Kakujaha-Matundu says the fuel price increase will not only affect motorists, but everyone across the board.

“Motorists are you and me, taking care of our families. Fuel price increases squeeze our already hard-pressed budgets, leaving us with less and less money to take care of our families,” he says.

Kakujaha-Matundu says there are other macro-economic effects, such as an increase in general price levels or inflation as it is known, causing everyone in the economy to be worse off financially.

“Unfortunately, we are not an oil-producing country and we have to deal with the consequences. I think compounded by the expected measures to control the Omicron Covid-19 variant, I am expecting a very gloomy Christmas,” he says.

He says Namibians should guard their budgets jealously in anticipation of a very difficult 2022.

“It seems it doesnt rain, it pours,” Kakujaha-Matundu says.

Economist Salomo Hei says the increase in fuel leads to an increase in the cost of living, adding that households disposable incomes would be eroded.

“This could lead to a potential price increase in a lot of the essential goods that are transported via road,” he says.

Employees of various retail chains last week anonymously told
not only would their businesses be affected, but also that of their suppliers.

The high cost of petrol and diesel would lead to the prices of basic necessities rising, they said.

The employees said many customers would now not be able to afford luxury goods, and would rather spend money on basic needs.

This comes amid the government already not being able to increase government employees salaries due to a lack of finances, they said.

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