Namibian motorists should brace themselves for another fuel hike in November after the Ministry of Mines and Energy announced a price increase of 50 c/litre for petrol and 70 c/litre for diesel on Thursday.
The increase, which will take effect from November 3, will see the petrol pump price in Walvis Bay rising to N$14.95 /l and N$14.88/l for diesel.
This will be the seventh fuel price hike by the Ministry for 2021.
The latest hike comes after an October increase of 30 cents, which brought the fuel pump price in Walvis Bay to N$14.45 per litre and diesel to N$14.18 litre.
Government through the National Energy Fund (NEF) is set to incur a bill of over N$120 million to cushion consumers against a much steeper fuel price hike in November.
“Given our weaker Rand and higher global oil price expectations, we do foresee at least one more fuel price hike by the MME before the end of the year,” Somonis Storm Economist Theo Klein said.
Although Namibian fuel prices are low compared to neighbouring South Africa, the local monthly price hikes have also been attributed to smuggling becoming rife in northern Omusati and Ohangwena regions, with drivers opting for cheaper fuel from Angola.
The discussion over the continued levying of fuel has also come to a head, with questions being raised on whether motorists should continue to fund the Motor Vehicle Accident Fund and Road Fund Administration or they should come up with their own sustainability models.
Fuel dealers in Namibia are currently charged a levy of N$1,48/litre as Road Fund Administration levy, a Motor Vehicle Accident Fund levy of 477c/litre, and a National Energy Fund levy of 98c/litre on petrol and 1.2cents/l on diesel, a position which is blamed for driving up Namibia’s pump price for motorists.
In South Africa, +/-35% of the retail price of fuel is taxes and levies.
According to the Automobile Association of South Africa (AASA), its current data predicts fuel price hikes of catastrophic proportions at the end of October for November.
This price hike will push 95 unleaded (ULP) inland above R19 a litre (close to R19.30/l in most instances). As diesel is unregulated, it’s expected to cost around R17 a litre at some forecourts.
