‘Simply shocking’ … Analysts paint gloomy picture amid more fuel price hikes

They also paint a gloomy picture for Namibian consumers amid continuously spiking fuel prices over the last few months.

The Ministry of Mines and Energy announced another planned fuel price hike on Friday, which will see the petrol price increasing by N$1,88 per litre, while diesel will increase by N$1,34 per litre.

The price of petrol at Walvis Bay will now stand at N$22,28 per litre, while diesel will be N$22,77 per litre. The rest of the country will be adjusted accordingly.

Economist Omu Kakujaha-Matundu said spiking fuel prices are beyond the control of the government, and are caused by the global economic environment.

“It is largely owing to the tribal war in eastern Europe, the so-called Russian invasion of Ukraine. Consumers should brace themselves for the worst of times since Namibian independence.”

Kakujaha-Matundu predicts that the war will carry on for a long time and warns Namibian consumers to gear up for the long haul.

He said the government has run out of ideas to cushion the consumer against the effects of the economic fallout.

“Coupled with high food prices, rising interest rates, possible hikes in taxi fares and utility prices, and possible lay-offs, consumers should cut their spending to the bare necessities. Throw less extravagant weddings, funerals, etc,” Kakujaha-Matundu said.

Economic analyst at the University of Namibia Jacob Nyambe said the fuel increase will wipe out consumers”; disposable incomes.

“There will be a surge in the fuel prices at the pump. Consumers”; disposable income will get squeezed from the frequent increases, due to the fact that such changes are usually untimely to adjusting household budgets. Certainly, for as long as the sanctions by the West on Russian oil continues, the market will take a long time to adapt to reduced global commodities supply,” said Nyambe.

“Namibian consumers should expect further adjustments until such time that supply capacities are met through increased output from other oil producing countries. The consequences are that the effects of the sanctions will continue to be felt on the domestic pump prices for the remaining part of 2022.”

The Ministry of Mines and Energy said the ongoing war between Ukraine and Russia was the major driver of skyrocketing fuel prices.

Namibia, like many other countries in the world, has been struggling to find a solution to the ongoing ever-increasing fuel price, which has left many consumers at the mercy of increasing inflation.

In an age of information overload, Sunrise is The Namibian’s morning briefing, delivered at 6h00 from Monday to Friday. It offers a curated rundown of the most important stories from the past 24 hours – occasionally with a light, witty touch. It’s an essential way to stay informed. Subscribe and join our newsletter community.