Namibian motorists could breathe a sigh of relief amid indications that the Ministry of Mines and Energy and the Ministry of Finance are engaged in talks to cushion citizens against rising fuel costs.
The Brief is reliably informed that discussions between the two key government ministries will see the suspension and reduction of some levies currently levied on fuel.
The measures are expected to be announced in April when the Mines and Energy ministry announces the fuel price for the month.
Brent crude oil prices increased from US$104.97 to $108.85 and reached a high of US$127.98 on the 8th of March after Western countries considered a ban on Russian oil imports.
Energy Fund Director, Saima Neke confirmed the talks but was tight lipped on details of the discussions.
“It’s a process, the two ministries are in consultation and the outcome of that consultation is not yet finalized,” she told The Brief.
Finance ministry Spokesperson, Wilson Shikoto, also confirmed talks between the two ministries regarding possible fuel price relief measures, but did not elaborate further.
“There is engagement taking place,” he said.
The planned move by the government comes as Economic advisory firm Simonis Storm had called for the scrapping of levies and taxes on fuel products and only reinstate fuel taxes once global oil prices normalize, in addition to partially subsidising under-recoveries.
Namibian fuel dealers 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 has also been blamed for driving up the fuel pump price.
The SA government recently introduced a temporary R1.50 per litre reduction in the fuel levy and has proposed the introduction of a fuel cap, which will allow petrol retailers to charge less than the maximum price, as part of measures to reduce the petrol price.
