Petrol price shocker

THE price of petrol in Namibia will break the N$5 barrier next week.Minister of Mines and Energy Erkki Nghimtina yesterday announced that the price is to go up by 40 cents a litre and diesel by 39 cents from next Wednesday.

Pump prices at Walvis Bay – the cheapest in the country – will increase to N$5,17 a litre for 93-octane leaded petrol, N$5,19 a litre for 95-octane unleaded, and N$4,93 for a litre of diesel. It is the second time in just over a month that the price of petrol has been bumped up.Consumers, already hard hit by last month’s fuel price hike and its ripple effects on the cost of transport and basic commodities, will have to tighten their belts even more.Nghimtina said at the end of last month that the current pump prices were between 50 cents a litre and 72 cents a litre below the import parity price for petrol and diesel respectively.He added that the revision of the Namibian fuel pump prices was to compensate for the fluctuations in the import parity price caused by the soaring international crude oil prices.In August, when the fuel prices were reviewed and adjusted, crude oil prices hovered around US$60 per barrel.At present, the price is just below US$70 a barrel.International crude oil prices have risen by as much as 40 per cent in the past six months.”As a result of continuously increasing crude oil prices, the Ministry is left with no option but to pass on these cost increases to the consumer in order to balance the under-recovery that is currently prevailing in the market.”The Ministry hereby urges all retail outlets to adjust their pump prices accordingly at the stipulated time as gazetted,” said Nghimtina.Little relief is in sight for consumers.In fact, Namibians should probably brace themselves for more bad news.Minister Nghimtina has pointed out that since there was little prospect of international crude oil prices dropping any time soon, pump prices would be “reviewed and adjusted regularly to avoid a situation whereby pump prices have to be increased drastically”.It is the second time in just over a month that the price of petrol has been bumped up.Consumers, already hard hit by last month’s fuel price hike and its ripple effects on the cost of transport and basic commodities, will have to tighten their belts even more.Nghimtina said at the end of last month that the current pump prices were between 50 cents a litre and 72 cents a litre below the import parity price for petrol and diesel respectively.He added that the revision of the Namibian fuel pump prices was to compensate for the fluctuations in the import parity price caused by the soaring international crude oil prices.In August, when the fuel prices were reviewed and adjusted, crude oil prices hovered around US$60 per barrel.At present, the price is just below US$70 a barrel.International crude oil prices have risen by as much as 40 per cent in the past six months. “As a result of continuously increasing crude oil prices, the Ministry is left with no option but to pass on these cost increases to the consumer in order to balance the under-recovery that is currently prevailing in the market.”The Ministry hereby urges all retail outlets to adjust their pump prices accordingly at the stipulated time as gazetted,” said Nghimtina. Little relief is in sight for consumers.In fact, Namibians should probably brace themselves for more bad news.Minister Nghimtina has pointed out that since there was little prospect of international crude oil prices dropping any time soon, pump prices would be “reviewed and adjusted regularly to avoid a situation whereby pump prices have to be increased drastically”.