By Staff Reporter WINDHOEK Yet another increase in the fuel price comes into force tomorrow at midnight, the Ministry of Mines and Energy announced in a statement yesterday. Mines and Energy Minister Erkki Nghimtina announced that pump prices for controlled petroleum products at Walvis Bay and petrol will increase by 21 cents per litre for both 93 Octane leaded petrol (retail) and 95 Octane unleaded petrol (retail) while diesel (wholesale) will go up by 12 cents per litre. The Walvis Bay pump price for 93 Octane petrol will be N$6.37 per litre, 95 Octane N$6.39 per litre while diesel will now cost N$6.41 per litre. Compared to neighbouring South Africa from where Namibia imports 100 percent of her fuel requirements, the price difference for 93 Octane petrol between the two countries is 7.8 percent, for 95 Octane it is 6.3 percent while for diesel it is 5 percent. “It is evident that for the month of May 2007, unleaded and leaded petrol will be 6.3% and 7.8% higher in South Africa than in Namibia, while diesel will be 5% higher in Namibia than in South Africa,” stated the minister. The increase in fuel prices was necessitated by the weakened average Rand/US dollar exchange rate, which affected the unit over/under recovery negatively. This further led to recoveries being experienced in the local market. The minister said during the last ten days of March 2007, international crude oil prices increased by more than US$9 per barrel to over US$66 per barrel due to the intense situation between Iran, other major oil-exporting nations and the western countries over Iran’s nuclear enrichment programme. “Despite the recent increases in the international crude oil prices, prices are being driven by strong demand of which about one-half of the projected growth in world oil consumption will come from China and the United States,” Nghimtina said. This has impacted import parity where a higher margin of under-recoveries has been recorded in the local market for the period under review, he added. The ministry reiterated that although it endeavours to keep fuel prices to the bare minimum given its huge impact on the economy, it will harmonise fuel prices with neighbouring states in order remain fair in the pricing mechanism used. “Namibians are forewarned that they will have to prepare for the unanticipated changes due to volatility in oil prices in the globalized market,” Nghimtina said.