Following a sharp increase in fuel prices in 2021, eight times to be precise, one could be forgiven for thinking that we have one of the highest fuel prices in Africa.
However, this is not true. According to Global Fuel Prices, Namibia’s petrol price isn’t exorbitantly high compared to most countries.
Thanks to the National Energy Fund (NEF), which has played a big role in cushioning consumers against market related fuel price hikes, and according to Simonis Storm this means local petrol prices would have increased from N$11.35 in January 2021 to N$20.08, if it was not for the Ministry of Mines which incurred under-recoveries of N$8.73 per litre in total last year.
Fuel dealers in Namibia are currently charged a levy of 90c/ litre on fuel, a Road Fund Administration levy of N$1,36/ litre, a Motor Vehicle Accident Fund levy of 47c/litre, and a National Energy Fund levy of 98c/litre, a position which is blamed for driving up the pump price for motorists.
The global average price per litre of 95-octane fuel is currently N$19.13, N$3.53 more than Namibia’s current fuel price.
When compared to SADC countries petrol is cheaper in Namibia at N$16.65/ litre compared to N$17.04 in Botswana, N$21.92 in Zimbabwe, N$16.19 in Eswatini, N$22.08 in Malawi, N$19.61 in South Africa, N$16.66 in Lesotho and N$16.95 in Mozambique.
Angola has the cheapest fuel at N$4.56, with Nigeria and Algeria having some of the lowest prices in Africa at N$6.35 and N$5.16 respectively.
Fuel price comparison, however, varies from one country to the other depending on regulations and in Namibia’s case , the government sets the fuel price, while in countries such as Angola it’s heavily subsidized.
In South Africa, +/-35% of the retail price of fuel is taxes and levies.
Fuel in the so-called developed countries, is significantly more expensive than in less developed countries.
In Europe, a litre of 95-octane costs around N$30 a litre in the United Kingdom, France, Ireland, Portugal, Italy and averaging N$15.17 per litre in the United States.
Hong Kong has one of highest petrol prices, costing as much as N$43.22 per litre.
