THE escalation in the pump oil price, that comes into effect on Monday some days after the cost of this commodity leapt skywards, as well as the recent resolution by the City of Windhoek to increase various municipal tariffs, would exert unbearable pressure on low earners. Cleaners, security guards, domestics, street vendors, and a multitude of other job categories in the lower-income bracket will be the worst affected and the hardest-hit.
As usual, the inevitable price increase is being attributed to the insecurity, the instability that results in reduction in oil output in Nigeria and growing demand for fossil fuels worldwide.
Developments in the Middle East, where there is a hell of a lot of rabble-rousing over Iran’s nuclear ambitions that could trigger another bout of bloodletting, have not helped matters.
There is anxiety among oil merchants that US-led efforts to stop Iran, OPEC’s second-largest member, from pursuing a suspected nuclear programme could lead to a disruption in Persian Gulf supplies as has happened in the past when conflict erupted in that region.
Over the past several weeks the crude oil market faced relentless pressure from escalating prices that hovered in the range of US$78 – US$80 for a barrel or for 192 litres.
As if the anguish was not enough for motorists, who so far appear to be only lightly tapping the brakes on demand, more anguish is predicted at the pump.
And if these constant inflationary price increments are anything to go by and if we are to be taken seriously on the implementation of bilateral accords that we sign with other African countries, we should without further ado enter into an oil partnership with Congo.
We should not miss the boat with regard to visiting Congolese President Denis Sassou-N’guesso who did not beat about the bush and proposed Namibia and Congo should forge joint ventures, particularly the expansion of the oil refinery at Pointe Noire, the second largest city in that oil-producing country separated from us by Angola.
The trend for oil price structures has been very disturbing, causing despondency among the millions of motorists and travellers who literally have to pay through their nose.
Namibia should not let Sassou N’guesso’s offer go begging because such a proposition could mean importation of cheaper oil that could benefit many a motorist at the pump.
Even President Hifikepunye Pohamba said despite provision for a Congo-Namibia Joint Commission through which the bilateral agreements could be facilitated, this has yet to see the light of day.
His guest is also disappointed that nothing concrete has so far taken shape in as far as economic growth through the agreements that were signed in the past goes. Considering the fact that Congo-Brazzaville has of late experienced relative political stability, we should seriously consider investing in an oil-refinery in that country if we are in the long-term to stabilize prices at the fuel pump here.
Of course, such an investment will be very capital-intensive in the initial stage but this could be offset by Namibian consumers possibly benefiting from cheaper refined oil and petroleum products in the long run, resulting in other spin-offs.
With tangible investments in new offshore oil fields, Congo-Brazzaville is becoming increasingly important to world global energy markets with its crude oil production quadrupling over the past two decades from 65 000 barrels per day in 1980 to an average of 280 000 barrels per day in 2000.
Though it suffered a setback largely due to lower production at mature fields and delays in bringing new fields online, its production is expected to rebound when its new fields come online and fully come into production.
It has been established that though Pointe-Noire, the port through which fossil fuels are exported to Europe, America and Asia, lacks capacity, this could be expanded.
This is where Namibia could chip in with a cash injection intended for the expansion or even the construction of a joint new oil refinery in this possibly win-win venture. Congo-Brazzaville is also strategically located and if this refinery venture is to become reality, surplus oil from this could also be exported to its neighbours Democratic Republic of Congo (DRC), Gabon, Cameroon and the Central African Republic.
This is a rock-solid opportunity that we should not let slip through our fingers.