Namibian motorists will on Wednesday start feeling the pinch of high fuel prices.
Information gathered by The Brief show that the country’s fuel was heavily subsidised, a position which was putting a strain on the National Energy Fund (NEF).
However, starting in June, Namibians will start paying the market price for petrol and diesel.
Mines and Energy Ministry Spokesperson, Andreas Simon, told The Brief that the increase of N$2.50 per litre for petrol and N$1.50/litre for diesel, which brings the Walvis Bay price to N$20.40 per litre for petrol and N$21.43 per litre for diesel, allows government to ensure that local fuel prices are market related, thus suppliers are not charging below market for their product.
“The N$2.50 increase for petrol and the N$1.50 increase for diesel is the under-recovery amount, which brings the total to N$179 million that will be paid to suppliers from the National Energy Fund (NEF) for having charges below market for fuel for the month of May,” he said.
Simon said the country uses a scientific model to peg fuel prices, but was doing everything under its control to keep fuel prices affordable.
“There are a lot of factors that determine the fuel prices. Factors such as; the exchange rate, the per barrel oil prices by producers and the logistical cost, which we have no control over. So we will need to input all those factors into our model to come to a determination.”
Mines and Energy Deputy minister Kornelia Shilunga said “The ministry will continue to keep a close eye on the developments in the global oil market and continue to make decisions that are in the best interest of the Namibian fuel consumers.”
The increase in the fuel price for June, comes after the Ministry reduced the pump prices for petrol and diesel by N$1.20/l and 30 cents/l respectively after the government approved a temporary reduction of levies imposed on fuel products, for a period of three months.
Namibia’s petrol and diesel prices had increased by 51% and 60% respectively in the last 12 months before the May price cuts.
