By Petronella Sibeene
WINDHOEK
The price of fuel will go up by 52 cents on Friday, Minister of Mines and Energy, Erkki Nghimtina, announced yesterday.
This, he said, is due to a combination of volatile international crude oil prices, strong demand for diesel and a low petrol products inventory.
“We are experiencing an under-recovery especially with diesel. It is too much, we just have to adjust,” said the Minister.
Deputy Director of Petroleum at the Ministry, Immanuel Nghishongele, also confirmed that from Friday diesel will increase by 52 cents while leaded and unleaded petrol prices go up by 12 cents per litre.
The Minister said with international fuel prices selling for as high as US$90 per barrel, Namibia has little choice but to increase its pump price.
Since October this year, fuel prices on the international market reached US$94 per barrel.
The increase in the price of petroleum products is driven mainly by strong demand growth globally.
Being a non-oil producing country, Namibia heavily depends on South Africa for supply.
The Minister said the Government is still studying the possibility of introducing a standard pump price for fuel, to enable, not only the Government, but also the already frustrated motorist to budget appropriately.
Apart from that, the Government is also pursuing negotiations with Congo-Brazzaville for Namibia to participate in the expansion of oil refineries in that country and in return benefit from the oil.
The ministry has warned motorists that the situation could be short-lived, as the environment is unpredictable.
Since the end of July, when the pump price reached the N$7 mark, the pump price for 93 Octane lead replacement petrol at Walvis Bay remains at N$6,98 per litre, while 95 Octane unleaded petrol costs N$6,91. A litre of diesel currently costs N$6,70.
In Windhoek, 93 Octane lead replacement petrol costs N$7,07 per litre, while 95 Octane unleaded petrol sells for N$7,09 a litre and diesel costs N$6,89.
The fluctuations in fuel prices have been a cause for frustration for motorists.