The Ministry of Mines and Energy has approved a 20 cents per litre increase in the Road Fund Administration (RFA) levy, effective December 6, 2023.
The adjustment increases the levy from 178 cents per litre to 198 cents per litre.
However, the increase is less than the N$1 fuel levy increase advocated for by the RFA to tackle a funding gap of N$3.6 billion in the 2024/25 financial year.
A RFA study indicates the need for the fuel levy to reach N$2.98 per litre by 2026 to adequately maintain the country’s road network.
Despite a 16.5% increase in revenue to N$3.4 billion in 2023, the RFA’s funding gap for the current year is reduced to N$800 million, with a five-year business plan anticipating a commitment of N$20.5 billion.
In line with the draft business plan, the RFA has proposed a series of measures to bridge the funding gap, including a 20% increase in mass distance charges, cross-border charges, and abnormal load fees, along with a 10% increase for road carrier permits. Vehicle registration fees will remain unchanged.
As part of Tuesday’s announcements, the Ministry also announced a decrease in petrol and diesel prices, with a reduction of 130 cents per litre.
This comes as the Ministry reported significant over-recoveries on both petrol and diesel, with petrol over-recoveries at 221 cents per litre and diesel over-recoveries at 190 cents per litre for diesel at 50 ppm and 203 cents per litre for diesel at 10 ppm.
At Walvis Bay, the adjusted prices will be N$21.58 per litre for petrol, N$21.85 per litre for diesel 50 ppm, and N$22.05 per litre for diesel 10 ppm.
