Namibian motorists on Friday heaved a sigh of relief after the Ministry of Mines and Energy maintained diesel and petrol prices for the month of August, and extended fuel price relief measures introduced in May.
According to the Ministry, the price of petrol will remain at N$22.28 cents per litre and the diesel price will remain at N$22.77 cents per litre in Walvis Bay while fuel prices across the rest of the country will also remain unchanged.
“The ministry recorded high over-recoveries on the two respective products. These over recoveries are mainly recorded due to a significant decrease in the oil prices per barrel,” Energy ministry Spokesperson Andreas Simon said on Friday.
The government department’s decision will, however, leave the MVA Fund, National Petroleum Corporation of Namibia (NAMCOR) and the Road Fund Administration counting their losses.
MVA Fund Chief Executive Officer Rosalia Martins-Hausiku warned that any extension in their levy cut, will negatively impact its revenue position, impacting its ability to deliver care to its clients.
“We started feeling the effects of the current 25% cuts in July and it’s translating into N$ 11 million per month as initially predicted. Further, an Operating Deficit aggregating to N$10 million will be recorded on 31 December 2022.Cash withdrawal from existing investment of $110 million inclusive payments towards the ERP system which is a critical mission, as the current system is unable to deliver business expectations,” she told The Brief recently.
The Road Fund Administration has also warned that the extension of the levy cuts will force the parastatal to terminate maintenance contracts because it will no longer afford to contractors.
The fuel levy has, however, been reinstated back at 90 cents after having been cut to 45 cents.
Road User Charge was reduced by 148 to 74 cents, NAMCOR 7.6 to 3.8 cents, thus accounting for a 50%, respectively, while MVA was reduced by 25% from 47.7 to 37.725 cents.
