Hardly have Namibians had time to digest their Xmas dinner, pack away their beach towels and finish wishing everyone a happy new year, than news of a first fuel hike has burst the bubble of glad tidings, and created a foreboding cloud of economic woe to the man in the street.
Koos van der Merwe (Chairperson Namibian Shell Retailers Committee) confirmed to Woema, that Namibians can expect a first fuel hike for 2014, which in all probability will be implemented early next week. And that by Monday the ball will be rolling with both petrol and diesel going up at the filling stations.
“This will have an impact on our consumers so early into the year, but we are still lucky in a sense that the price was stable in December and January in comparison with SA,” he said, adding that our Ministry is very responsible in the way they handling the fuel price hikes bearing the consumer in mind, and the effect an increase has on the economy.
“One again the spin off effects of a fuel price hike, will see prices going up and customers paying more for less, but as long as the rand tumbles like it is doing – the picture isn’t going to get any better.”
“Even with the anticipated price hike, Namibia will still be paying less for fuel than compare to what it is currently costing SA motorists at the pumps, another indication that the Ministry Mines & Energy are considerate towards the end user.”
Meanwhile Harald Schmidt (CEO Secretariat Namibian Oil Industry Association) has confirmed that an increase is on the cards, commenting on the sharp fall in the exchange rate has been the deciding factor to put up the fuel prices in Namibia.
“The increase will be a substantial one,” he said gravely.
Schmidt also pointed out that Namibia did not see an increase in December and January. And because of this the fuel hike will exceed the prices anticipated in South Africa, and that Namibia needs to brace itself for this reality by the start of February, 2014.
“Once again this will have a grave impact on the supply chain in Namibia which is predominantly relying on road transport, and therefore any increases in the transport costs will immediately increase prices of all commodities – the man in the street is going to bear the brunt.”
The AA SA has predicted a rise in the petrol price of between 28 and 32 cents, with diesel increasing by 15 cents, with the final figure depending on how the rand behaves between now and the end of this month.
In the latest report, AA public affairs head Graeme Scala explains a grim scenario: “After remaining fairly flat throughout December, the exchange rate has deteriorated from a South African perspective.
“The Rand is now testing the R11 to the US dollar mark and although international petroleum prices have declined over the same period, the drop has not been enough to offset the increased exchange rate,” Scala added, and for now it is not looking good.”