Petrol prices in Namibia set to nudge N$5 barrier

NAMIBIANS will have to brace themselves for a steep fuel price hike from next Wednesday.The Minister of Mines and Energy, Erkki Nghimtina, announced the increase yesterday.

The price of petrol will go up by 39 cents a litre; diesel will cost 38 cents a litre more. Pump prices at Walvis Bay, the cheapest in the country, will increase to N$4,79 for a litre of 95-octane leaded petrol, N$4,77 for 93-octane leaded petrol, and N$4,54 for diesel.Petrol will be the most expensive at Katima Mulilo: N$5,01 for 95-octane and N$4,99 for 93-octane.The increase comes as no surprise to most motorists, who have been expecting it for weeks amid rumours that petrol would hit the N$5-a-litre mark less than a year after it broke through to N$4 a litre.Nghimtina said the hike was necessary because of the sharp increase in crude oil prices over the last three months, which have hovered between U$50 (N$335) and US$60 a barrel.”The revision of the Namibian fuel pump price is to compensate for the fluctuations in the import parity price, which is mainly due to fluctuations in the international crude oil prices incurred during the past three months, as imposed on the selling price and the depreciation of the Namibia dollar against the US dollar, since all crude prices are valuated in US dollars,” he said.Nghimtina said pump prices for petrol were 37 and 39 cents per litre lower than the import price at the end of June.The import price of diesel was a whopping 97 cents a litre more expensive than Namibian consumers were paying for it.Government’s National Energy Fund has been absorbing the price difference.The Namibia Bus and Taxi Association said it would make a statement about possible taxi fare increases after a committee meeting tomorrow.Pump prices at Walvis Bay, the cheapest in the country, will increase to N$4,79 for a litre of 95-octane leaded petrol, N$4,77 for 93-octane leaded petrol, and N$4,54 for diesel.Petrol will be the most expensive at Katima Mulilo: N$5,01 for 95-octane and N$4,99 for 93-octane.The increase comes as no surprise to most motorists, who have been expecting it for weeks amid rumours that petrol would hit the N$5-a-litre mark less than a year after it broke through to N$4 a litre. Nghimtina said the hike was necessary because of the sharp increase in crude oil prices over the last three months, which have hovered between U$50 (N$335) and US$60 a barrel.”The revision of the Namibian fuel pump price is to compensate for the fluctuations in the import parity price, which is mainly due to fluctuations in the international crude oil prices incurred during the past three months, as imposed on the selling price and the depreciation of the Namibia dollar against the US dollar, since all crude prices are valuated in US dollars,” he said.Nghimtina said pump prices for petrol were 37 and 39 cents per litre lower than the import price at the end of June.The import price of diesel was a whopping 97 cents a litre more expensive than Namibian consumers were paying for it.Government’s National Energy Fund has been absorbing the price difference.The Namibia Bus and Taxi Association said it would make a statement about possible taxi fare increases after a committee meeting tomorrow.