Consumers brace for fuel increase 

Consumers brace for fuel increase 

Commuters and consumers have to brace themselves when the petrol price increases by 42 cents per litre, and diesel goes up by N$1.20 per litre on Wednesday. 

These significant increases are sure to set in motion a domino effect that will impact prices of most items, from transport fares to bread. 

The mines and energy ministry cites increasing crude oil prices that have been influenced by various geopolitical and economic factors. 

“The sanctions and geopolitical tensions affecting major oil-producing countries, and OPEC+ production cuts, have led to a reduction in the global oil supply, fuelling higher prices. The current increased oil demand, particularly in the northern hemisphere due to winter effects, has also played a significant role in driving fuel prices up,” the ministry stated in its monthly fuel price review.  

The ministry added that currency exchange rate fluctuations between the Namibia and US dollar also impacted the decision to increase fuel prices. This is considering the Namibia dollar depreciated 2.9% against the US dollar since the end of December 2024. 

Moreover, the ministry announced under-recoveries of about 82 cents per litre for petrol, 175 cents per litre for 50ppm diesel, and 166 cents per litre for 10ppm diesel. These under-recoveries played a vital role in the ministry’s decision to increase domestic fuel prices. 

Meanwhile, the National Energy Fund will absorb remaining under-recoveries. The ministry continues to monitor developments in international oil markets, and aligns domestic prices to ensure a stable fuel supply, while taking into account the impact on consumers.