Fuel prices go up

WINDHOEK, JULY 31 – Fuel consumers will have to tighten up their financial belts as from the 1st of August after the Ministry of Mines and Energy announced that fuel pump prices for August 2018 will increase at 00h01 1st August 2018.

This after the latest fuel price review revealed oil importers paid more than the prices set by the government to bring fuel products into the country.

A statement form the Ministry read: “The final figures recorded are way above the prices set by the government and these pricing under-recoveries are huge enough to trigger upward adjustments in the local pump prices in order to create cost-recovery equilibrium in the local market. However, the under-recoveries will be wholly absorbed by the National Energy Fund (NEF) on behalf of consumers.”

Last month (June 2018) the NEF also financed the entire under-recovered amount on behalf of fuel consumers.

The Ministry of Finance is mandated to generate and collect tax revenue for the government and has decided to adjust the Fuel Tax by 25 c/I from 40 c/I to 65 c/I on all the price controlled petroleum products effective 4th July 2018.

The statement added that the NEF had reimbursed oil importers as this adjustment was not passed on at the pumps. The local oil market operates on a cost-recovery model and the idea is that all supply costs are passed on to consumers at the pumps.

The over/ (under)-recoveries per product on the BFP import parity landed in Walvis Bay calculated as at 25 July 2018 are indicated below:

95 Octane Unleaded Petrol Diesel 500ppm
Diesel 50ppm

(69.626) c/f.
(59.532) c/f.
(59.591) c/f.

Fuel pump prices in Walvis Bay will increase (Fuel Tax only) as follows:

95 Octane Unleaded Petrol Diesel (all grades)

– increase by 25 c/ I (retail)
– increase by 25 c/ I (wholesale)

The new fuel pump prices in Walvis Bay will be:

95 Octane Unleaded Petrol Diesel 500ppm
Diesel 50ppm

NS 12.55 per liter NS 12.88 per liter NS 12.93 per liter

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