Fuel prices set to go up again

WINDHOEK, OCT. 1 – Following what has become an almost monthly trend, fuel pump prices for this month will increase by 50c per litre on 3 October, according to a statement from the Ministry of Mines and Energy.

International prices of refined oil and the exchange rate between the Namibian Dollar against the US Dollar in which oil is priced are two of the major factors attributed to the price hike.

“The past months have seen both factors play out and, as a result, fuel pump prices (are) increasing at a faster pace than our capacity to contain them. Since the beginning of the year, global oil prices have been on an increasing trend, stretching from US$77 per barrel of refined oil in January to US$91 in September,” read the statement.

These figures are expected to be in the tripple digits by the end of the year. The exchange rate between the Namibian Dollar against the US Dollar has from N$12.20 : US$1 in January, to about N$14.71 in September 2018.

According to the statement, “these two factors have contributed immensely to the recent increases in the local pump prices as it has become too expensive to ship, in bulk, oil to our shores.

The Energy Ministry said that the National Energy Fund had and continued to pay a fair share of the full costs incurred by bulk fuel importers on behalf of the consumers. In fact, the statement says the Fund has indeed paid a larger portion than consumers in the past few months despite the increases, and this month would not be different.

“Provisional figures show that more than N$1.30 per litre was incurred by bulk oil importers to bring fuel to Walvis Bay throuhogut the month of September, and the National Energy Fund will pay more than 80cents per litre of that amount.”

The under-recoveries per product on the Basic Fuel Price import parity landed in Walvis Bay calculated as at 25 September, 2018, are indicated below:

95 Octane Unleaded Petrol
Diesel 500ppm
Diesel 50ppm

(131.505) eft.
(144.720) eft.
(144.494) c;e

More than half for each of the products under-recoveries as recorded above will be paid for by the National Energy Fund to the bulk oil importers.

Fuel pump prices in Walvis Bay will increase as follows:

95 Octane Unleaded Petrol
Diesel (all grades)

-increase by 50 ell (retail)
-increase by 50 ell (wholesale)

Thus, the new fuel pump prices in Walvis Bay will be:

95 Octane Unleaded Petrol
Diesel 500ppm
Diesel 50ppm

NS 13.45 per liter N$ 13.78 per liter N$ 13.83 per liter

Fuel pump prices countrywide will also be adjusted accordingly. – musa@namibiadailynews.info