Namibia: First Fuel Hike for 2020

The Ministry of Mines and Energy has announced the price of both petrol and diesel will increase from tomorrow at midnight.

The increase of N$1 for petrol and 70 cents for diesel will bring fuel pump prices at the coast to N$11,35 for a litre of petrol and N$11,38 per litre of diesel.

This month's increase will be the first this year.

In January, pump prices were at N$13,05 per litre for 95 octane unleaded petrol, and N$13,63 per litre for diesel 50 ppm.

It then dipped following a crash in oil prices when the world went into Covid-19-imposed lockdowns.

Ministry spokesperson Andreas Simeon announced last Friday the Namibia dollar appreciated against the US dollar in July and that led to cheaper imports.

Fuel prices globally have also picked up in July, with petrol averaging N$798,22 and diesel N$840,48 per barrel.

June prices were at N$756,13 and N$758,34, respectively.

Andreas said this indicates that global demand is gaining momentum despite the impact of Covid-19.

It has also become cheaper to ship petroleum products to Namibian shores.

July recorded a drop of 20% in the shipping of petrol, from 98,67 cents a litre to 78,17 cents. Diesel shipping costs also lowered from 108,29 cents to 85,99 cents a litre.

DEALER MARGIN

In May, in an attempt to give Covid-19 relief to fuelling stations, a 50 cents dealer margin was introduced.

It was to remain for three months, and since demand for fuel has started picking up as lockdowns are eased, the extra 50 cents dealer margin will be discontinued this Wednesday.

ROAD USER CHARGE

Andreas also announced that a 5% road user charge has been approved by the Ministry of Finance from Wednesday.

This has led to an increase in the levy on fuel products to be paid to the Road Fund Administration, from 136 cents to 141 cents.

The ministry said the above was reviewed to ensure the orderly importation of fuel products into the country.

Email: [email protected] | Twitter: @Lasarus_A

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