Surprise! Second petrol price shock in a month

FUEL prices have been increased for the second time in a month, with the Ministry of Mines and Energy attributing the increase to high international oil prices and the depreciation of the South African rand – to which the local currency is pegged – against the US dollar.

In this year’s second petrol price hike, effective today, unleaded and lead replacement petrol (LRP) have gone up by 21 cents a litre while diesel went up by 12 cents a litre. According to the Ministry, the new Walvis Bay pump prices are N$6,39 per litre of 95 octane unleaded petrol, N$6,37 for a litre of 93 octane LRP and a litre of diesel now goes for N$6,32.”During the period of March through to April 2007, the average rand/ US dollar exchange rate has been weakened, thus affecting the unit recovery negatively which led to under-recoveries being experienced in the local market,” said Minister Erkki Nghimtina.This increase comes days after South Africa hiked its fuel prices.Namibia currently imports all of its fuel from neighbouring South Africa.Nghimtina warned consumers to be prepared for any eventuality concerning fuel prices.”In a politically volatile world, Namibian consumers are forewarned that they will have to prepare for the unanticipated changes due to volatility in oil prices in the globalised market,” he said.According to the Ministry, the new Walvis Bay pump prices are N$6,39 per litre of 95 octane unleaded petrol, N$6,37 for a litre of 93 octane LRP and a litre of diesel now goes for N$6,32.”During the period of March through to April 2007, the average rand/ US dollar exchange rate has been weakened, thus affecting the unit recovery negatively which led to under-recoveries being experienced in the local market,” said Minister Erkki Nghimtina.This increase comes days after South Africa hiked its fuel prices.Namibia currently imports all of its fuel from neighbouring South Africa.Nghimtina warned consumers to be prepared for any eventuality concerning fuel prices.”In a politically volatile world, Namibian consumers are forewarned that they will have to prepare for the unanticipated changes due to volatility in oil prices in the globalised market,” he said.