Agriculture minister Calle Schlettwein has warned that the continued rise in fuel prices will have a negative impact on the country’s agricultural sector and will push food prices beyond the reach of many.
“The ever-increasing fuel price is a serious concern. In the agriculture/food sector, it contributes to steep price increases making food unaffordable for many poor. Other goods and services are equally impacted upon. In any event, it pays for a war we are not party to,†he said in a social media post on Monday.
This comes as the Ministry of Mines and Energy on Friday announced fuel prices increases of N$1.88 per litre for petrol and N$1.34/l for diesel, a development that will bring coastal prices of petrol and diesel to N$22.28/l and N$22.77/l respectively.
“Namibian pump prices have increased N$6.63/l for petrol and N$7.19/l for diesel since the start of 2022.This includes the cuts of N$1.20/l for petrol and N$0.30/l for diesel in May 2022 when the temporary relief measures were introduced,†said Robert McGregor from Cirrus Capital.
“Fuel prices have been a key driver of inflation for the region, including Namibia. Petrol pump prices here are up 64.4% y/y and diesel (50ppm) up 67.7% y/y. Fuel prices have also been volatile, with deflation in 2020 and rapid inflation from mid-2021 accelerating in 2022.â€
In April, Schlettwein warned the country’s agricultural sector was under siege from rising input costs, a development that will affect Namibia’s agricultural production, with possible job losses soon.
He had noted that the cumulative input price increase is making agricultural production very expensive.
The Ukraine-Russia conflict, along with a host of pre-existing factors, have driven fertilizer prices to record highs.
Russia, which accounts for around 14% of global fertiliser exports, has temporarily suspended outgoing trade, which is expected to have a strong ripple effect across global food markets.
Agriculture experts assert that fertiliser costs constitute over 50% of some farmers’ expenditure on input costs and are expected to rise by between 32% and 69% in neighbouring countries such as South Africa.
Research firm, Simonis Storm, notes that fertiliser prices in South Africa increased by 128% in 2021 on average in United States Dollar terms, following a 155% rise in international fertilizer prices last year.
According to the latest Namibia Statistics Agency data, Namibia imported 11 383 750 kg of fertiliser and pesticide from Russia at a cost of N$160 million, compared to 1 308 910 kg imported at a cost of N$6.4 million in Q1 of 2021.
