The Ministry of Mines and Energy has announced an increase in fuel prices by N$1.20 per litre for petrol and N$1.70 per litre for diesel, effective from the 6th of September 2023.
As a result, the petrol price in Walvis Bay will be N$20.98 per litre, while the price of diesel 50 ppm will be N$20.75 per litre, and diesel 10 ppm will be N$20.95 per litre.
Mines and Energy ministry Spokesperson, Andreas Simon, said the Ministry has recorded significant under-recoveries on petrol and both diesel products.
“This represents an under-recovery of 240 cents per litre on petrol and under-recoveries of 354 cents and 348 cents per litre on diesel 50 ppm and diesel 10 ppm, respectively. The Ministry would like to emphasize that Namibia is a price taker in the international oil market, and actions or decisions that originate from supply forces such as OPEC+ have a significant impact on our local fuel prices,” he said on Monday.
“There is a pressing need to ensure that fuel prices accurately reflect market dynamics to ensure the efficient security of supply. The National Energy Fund will absorb the entirety of the under-recoveries on behalf of fuel consumers through the fuel equalization levy.”
The announcement comes as the ministry had not adjusted the country’s fuel prices for the previous two consecutive months.
Namibia is currently in talks with India regarding plans to source affordable fuel from the Asian country.
According to government figures, Namibia consumes an average of 90 million litres of fuel per month.