The Ministry of Mines and Energy has announced a price increase of 70 c/litre for diesel and petrol with effect from the 1st of December.
This will be the eight-fuel price hike by the Ministry for 2021.
The latest hike, which brings the petrol pump price in Walvis Bay to N$15.65 per litre and diesel to N$15.58 litre, comes after a November increase of 50 c/litre for petrol and 70 c/litre for diesel.
Government through the National Energy Fund (NEF) is set to incur a bill of over N$154 million to cushion consumers against a much steeper fuel price hike in December, bringing its cost for the last two months to N$274 million.
The hike is in line with economist projections of one more price increase before the end of the year citing a weaker Rand and higher global oil price expectations.
Neighboring South Africa increased its petrol price by R1.21 per litre, with the Automobile Association of South Africa (AA) warning that R20 a litre is likely on the cards before the end of 2021 from R14.90 a litre in January 2021, with further increases expected in the coming months.
The SA fuel price has increased about five times so far this year.
Global oil prices have plunged below $80 a barrel after “the most worrying” new variant of Covid-19 was identified in South Africa, raising fears in the market of renewed global travel restrictions that could derail the oil market’s recovery.
