FUEL retailers have urged the Ministry of Mines and Energy, among others, to implement an interim rescue profit margin as they continue to scrape together a pittance from the petrol and diesel they sell to the public.
They have also urged the ministry to impose regulatory measures against banks, which are said to be encroaching on the fuel retail sector through card commissions, bank costs and fuel incentives.
A message widely shared on Whats-App yesterday said: "People, just be prepared. There is a big possibility that there would be no petrol sold for the whole of next week, because there is a dispute between service station owners and the Namibian government.
"They say petrol is coming in at the port of Walvis Bay at about N$8 a litre, but service stations are not getting any profit and want to know where all the money is going."
Hennie Kruger, the chairperson of the Fuel and Franchise Association of Namibia (Fafa), in a letter addressed to the ministry said they are operating at a low profit margin of 5%.
This is amid increasing fuel prices which are hurting consumers' pockets.
There has been no formal threat by Fafa on a shutdown of service stations, nor have they provided a deadline for their demands.
Pump fuel prices have increased by N$6,63 per litre for petrol, and N$7,19 per litre for diesel since the beginning of the year.
The association has also complained about banks, which they say are also encroaching on retail margins and the retail fuel business through card commissions, bank costs and fuel incentives offered to the public.
Fuel retailers have also accused the government of being anti-competitive by allowing the National Petroleum Corporation of Namibia (Namcor) to operate as a regulator and competitor against existing private fuel operators.
Oshikango service station owner Jafet Kadila yesterday said retailers make N$1,13 on every litre of fuel sold.
This is spent, among others, on salaries, investment costs, electricity and bank charges.
He said retailers in the north are hit harder by low sales as a result of illegal, more affordable fuel imports from Angola.
"Our government does not seem to care about Namibian business people, especially us in the north. Firstly we can't sell a lot of litres to sustain our business, because the government allows people to go fuel up in Angola," he said.
Kadila said these people also fuel up in double-tank cars, and others cross illegally with fuel containers which they resell on the black market unabated.
"The government wants to make money, but they are ignoring the suffering of the Namibian retailers," he said.
Minister of mines and energy Tom Alweendo in a letter to Fafa said a margin increase for retailers is off the cards.
He said this is because the government has already cut the levies of various institutions, such as the Road Fund Administration, the Motor Vehicle Accident Fund, Namcor, as well as the fuel tax for the Namibia Revenue Agency to reduce pump prices.
"The current economic circumstances in the international oil market and the local Namibian economy cannot positively accommodate an increase in the dealer (or any other) margin currently. The ministry fully understands the pleas of retailers and sympathises with all the retailers in this matter.
"The ministry will therefore reconsider this position as soon as the market has stabilised," Alweendo said.
He said the government is also exploring all other avenues to reduce fuel prices.
According to Alweedo, the ministry is in the process of engaging with the Bank of Namibia to see how best commercial banks can be stopped from charging retailers for the swiping of fuel and other related credit and/or debit card incentives.
The minister also defended the accusation against Namcor, saying the state-owned enterprise does not regulate the petroleum downstream sector.
"It is also important for us all to understand that Namcor as a local brand also plays a catalytic role in improving Namibian local ownership in the sector, while still enhancing the security of petroleum products supply in the country.
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"It is therefore on this basis that the ministry does not consider Namcor's participation in the sector as conflicting or anti-competitive," he said.
Attempts to get the ministry's comment on a potential seven-day fuel retailer shutdown proved futile.
Executive director of mines and energy Simeon Negumbo did not respond to questions sent to him by the time of going to print yesterday.
'SHOCKING'
Economists recently described the latest fuel price increases as shocking.
They also paint a gloomy picture for Namibian consumers amid continuously spiking fuel prices over the last few months.
The petrol price increased by N$1,88 per litre, while diesel increased by N$1,34 per litre earlier this month.
The price of petrol at Walvis Bay stands at N$22,28 per litre, while diesel is N$22,77 per litre.
