By Petronella Sibeene
Again! The Ministry of Mines and Energy has announced a fuel price increase to take effect at 00h01 tomorrow.
The latest fuel price revision shows that 93 Octane lead replacement petrol and 95 Octane unleaded petrol will increase by 25 cents per litre, while diesel will go up by 06 cents per litre.
The Walvis Bay pump price for 93 Octane petrol will be N$6.62 per litre, 95 Octane petrol N$6.64 per litre, while diesel will as from tomorrow cost N$6.38 per litre.
Pump prices all over Namibia will be changed accordingly.
Compared to neighbouring South Africa from where Namibia imports 100 percent of her fuel requirements, the price difference between the two countries is 2.4 percent for 93 Octane, and 5.8 percent for 95 Octane, while for diesel it is 5.1 percent.
This means that in South Africa’s Gauteng Province, 95 Octane petrol costs N$7.24 while in Windhoek it will cost N$6.97.
Further, 93 Octane will cost N$6.97 in South Africa whereas the same commodity will go for N$6.80 in Windhoek. The pump price for diesel in South Africa is N$6.25 per litre while in Namibia’s capital it will be N$6.57.
The increase comes as a result of the average Rand/US Dollar exchange rate that has depreciated.
Minister of Mines and Energy Erkki Nghimtina yesterday announced that the depreciation has affected the unit over- or under-recovery negatively. This has further led to under-recoveries being experienced in the local market.
Further, crude oil prices continue to surge and remain tight worldwide. The state of affairs resulted in the import parity being negatively affected. Last month, crude oil prices were between US$68 and US$72 a barrel.
The looming threats of supply disruption by major oil exporting nations also contributed to the situation. Oil exporting countries remain Saudi Arabia, Venezuela, and Nigeria among others.
“The current pattern of increasing demand for petroleum products, combined with increased crude oil prices, has led to a bullish market behaviour pushing up crude oil prices to the record high experienced during 2006,” said Nghimtina.
Nghimtina reiterated that although the ministry endeavours to keep fuel prices down, it would harmonise fuel prices with neighbouring states to be in line with the pricing mechanisms.
“In a politically volatile world, Namibian motorists are forewarned that they will have to prepare for unanticipated changes due to volatility in the global market,” the minister said.