Staff Reporter
THE Ministry of Mines and Energy announced a fuel price increase of N$1,20 per litre for petrol and N$1,30 per litre for diesel, which will come into effect on 2 March.
The adjustment means new pump prices in Walvis Bay will be N$17,15 per litre for unleaded petrol and N$17,28 per litre for diesel, while fuel prices for the rest of the country will be adjusted accordingly.
“The Ministry of Mines and Energy understands and acknowledges the difficulties which may be brought about by these adjustments. However, it is important to emphasize that those factors that contribute to the sharp and continual increases in fuel prices are beyond the control of the Ministry,” the Ministry’s Executive Director, Simeon Negumbo, stated.
According to the Ministry, there is a mismatch between global oil supply and demand, which is partly because the Organization of the Petroleum Exporting Countries (OPEC) reduced their supply and is now reluctant to increase it.
This, plus the geopolitical tension in oil producing countries, contributed to the increase in fuel prices.
The Ministry also explained that while the Namibian Dollar increased against the US Dollar in February, the appreciation of the Namibian Dollar was not significant enough to offset the increase in fuel prices.
Furthermore, considering the volatility of the markets, the ministry stated that more fuel increments can be expected in the coming months.
The review of fuel prices, which is conducted every month, revealed significant under-recoveries recorded during the trading cycle under review.
These under-recoveries, which amounts to approximately N$143 million, will be covered by the National Energy Fund (NEF) at the end February on behalf of fuel consumers.
“We would therefore like to call on all the fuel consumers to guard against unnecessary travel to cut on expenditures,” Negumbo concluded.
File photo for illustrative purposes only.
