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Namibians face sharp increase in petrol price

Namibians face sharp increase in petrol price

Niël Terblanché

NAMIBIAN motorists face a sharp increase in the price for particularly petrol as fuel prices will be adjusted upwards at one minute past midnight.

The increase in the Road User Charges in Namibia, as well as a sharp rise of 37% in the global oil market demand, and in particular a sharp increase in the price paid for a barrel of petrol, have forced the Ministry of Mines and Energy to increase the fuel price countrywide.

Petrol is set to increase by 70 cents per litre, while 50 ppm diesel will increase by 30 cents per litre. The new fuel pump prices in Walvis Bay will change to N$12,75 per litre and 50 ppm diesel to N$13,33 per litre. Fuel pump prices countrywide will be adjusted accordingly.

The Road Fund Administration has increased its Road User Charges across the board effective from 1 May as published in the Government Gazette.

Consequently, the RFA fuel levy is adjusted with 6 cents per litre from N$1,30 to N$1,36 per litre, in line with the annual inflation figure, effective from 2 May 2019. The RFA fuel levy is the largest levy in the fuel price build-up at the moment, meant for the upkeep of the road network in Namibia and financing the construction of new roads.

The most affected product in terms of this demand-driven sharp increase is petrol. The average price per barrel for petrol jumped from US$72 in March 2019 to an average of US$80 in April.

Diesel prices have not taken a big jump in the same period under review.

Diesel increased from an average of US$80 per barrel in March to an average of US$82 in April. As a result, the unexpected increase in the international petrol price through April caused a situation of huge under-recoveries. The increase of the diesel price did not have such an adverse effect with regards to under-recoveries.


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