Petrol revs past N$7

ANOTHER fuel price shocker is set to hit the nation barely two weeks after the last increase came into effect.

From Monday, the price of petrol will go up by 27 cents a litre, while diesel will increase by 32 cents a litre. Inclusive in the price increases will also be the upping of the Motor Vehicle Accident Fund levy.This will see (effective) Windhoek prices skyrocketing and for the first time going over the N$7 mark with 95 octane unleaded petrol going up to N$7,09 per litre, 93 octane lead replacement petrol (LRP) at N$7,07 a litre while diesel will now go for N$6,89 a litre.* The new Walvis Bay pump prices will be N$6,91 for a litre of unleaded petrol; N$6,89 for a litre of LRP and a litre of diesel will now cost N$6,70.* At Katima Mulilo, a litre of unleaded petrol will cost N$7,16, LRP at N$7,14 a litre and N$6,90 for a litre of diesel.* In the Hardap Region: unleaded petrol – N$7,23, LRP – N$7,21 while diesel will cost N$7,03.* Epukiro is one the hardest hit areas with unleaded petrol costing N$7,43 per litre, LRP at N$7,41 and diesel at N$7,22.NIGERIAN UNREST Despite a few and insignificant decreases in the price, fuel has mostly been on an upward spiral since last year, mainly because of to the unrest in Nigeria which has seen oil production in the major oil exporting nation cut by thousands of barrels a day.Adding to the fuel woes are similar supply disruptions in other major oil exporting countries like Venezuela and Saudi Arabia.Another factor is that South Africa from where Namibia imports all its fuel, has also been increasing fuel prices in that country.Minister of Mines and Energy, Erkki Nghimtina, yesterday attributed the increases to the volatile and rising crude oil prices, which this week hit a peak at over US$78 (N$546) per barrel, nearing a record high of last August.”The situation of surging crude oil prices has rendered the crude markets to remain more tight and bullish making it more difficult for non-oil producing countries and their economies.”In Namibia, this situation has contributed to the import parity being negatively affected leading to the under-recoveries experienced in the local market which necessitates an upward adjustment of fuel prices,” said Nghimtina.However, some voices have questioned Namibia’s reliance on importing all its fuel from South Africa alone, instead of looking at alternative petroleum products sources in the region.A source in the local oil industry, who chose to speak on condition of anonymity, told The Namibian there was room and options available for the country to pursue so as to bring competition into the market.”The reason …is that we currently rely on oil companies which are subsidiaries of big South African companies with refineries in that country.But it’s high time the Ministry (of Mines and Energy) looked at alternative sources which could bring competition to the South African companies and could offer consumers a better deal,” said the source.pasInclusive in the price increases will also be the upping of the Motor Vehicle Accident Fund levy.This will see (effective) Windhoek prices skyrocketing and for the first time going over the N$7 mark with 95 octane unleaded petrol going up to N$7,09 per litre, 93 octane lead replacement petrol (LRP) at N$7,07 a litre while diesel will now go for N$6,89 a litre.* The new Walvis Bay pump prices will be N$6,91 for a litre of unleaded petrol; N$6,89 for a litre of LRP and a litre of diesel will now cost N$6,70.* At Katima Mulilo, a litre of unleaded petrol will cost N$7,16, LRP at N$7,14 a litre and N$6,90 for a litre of diesel.* In the Hardap Region: unleaded petrol – N$7,23, LRP – N$7,21 while diesel will cost N$7,03.* Epukiro is one the hardest hit areas with unleaded petrol costing N$7,43 per litre, LRP at N$7,41 and diesel at N$7,22.NIGERIAN UNREST Despite a few and insignificant decreases in the price, fuel has mostly been on an upward spiral since last year, mainly because of to the unrest in Nigeria which has seen oil production in the major oil exporting nation cut by thousands of barrels a day. Adding to the fuel woes are similar supply disruptions in other major oil exporting countries like Venezuela and Saudi Arabia.Another factor is that South Africa from where Namibia imports all its fuel, has also been increasing fuel prices in that country.Minister of Mines and Energy, Erkki Nghimtina, yesterday attributed the increases to the volatile and rising crude oil prices, which this week hit a peak at over US$78 (N$546) per barrel, nearing a record high of last August.”The situation of surging crude oil prices has rendered the crude markets to remain more tight and bullish making it more difficult for non-oil producing countries and their economies.”In Namibia, this situation has contributed to the import parity being negatively affected leading to the under-recoveries experienced in the local market which necessitates an upward adjustment of fuel prices,” said Nghimtina.However, some voices have questioned Namibia’s reliance on importing all its fuel from South Africa alone, instead of looking at alternative petroleum products sources in the region.A source in the local oil industry, who chose to speak on condition of anonymity, told The Namibian there was room and options available for the country to pursue so as to bring competition into the market.”The reason …is that we currently rely on oil companies which are subsidiaries of big South African companies with refineries in that country.But it’s high time the Ministry (of Mines and Energy) looked at alternative sources which could bring competition to the South African companies and could offer consumers a better deal,” said the source.pas