ONGWEDIVA - Three Puma service stations in the Ohangwena region have stopped operations due to competition brought by the rapid growth in cross-border fuel smuggling.
According to the police head of crime prevention in the Ohangwena region, Bennet Muyambango, the Omafo, Oshikango, and Ondobe service stations have closed because they no longer attract customers because of competition from illegal ‘ngungula service stations’ that are even operating in broad daylight.
“Everyone is running to ngungula to fill their vehicles while some are buying the fuel in containers for resale,” he said.
Ngungula is the colloquial name for fuel smuggled from Angola where it is cheaper than that sold in Namibian service stations. A five-litre container of petrol or diesel is sold at N$60, while the 25-litre container goes for as little as N$300. This amount of fuel cost about N$530 at local service stations.
Those who buy for profit then resell the 25-litre container at between N$400 to N$450, making N$100 to N$150 profit.
Ngungula is derived from the word, okungungula, which is an Oshiwambo term for trotting or running steadily. They claim their daily customers are Namibian taxi drivers and individuals who buy to resell the smuggled fuel for profit around Oshikango or in further areas outside the town. A local businessman Daniel Shindume, who owns the Onhuno Puma service station said very soon he will close the station because there are no customers.
“It’s just frustrating because motorists are not coming. The service station is always empty. Ngungula has a huge negative impact on businesses,” he lamented.
Shindume it’s unfair for them because they are paying tax but other people are making lots of money through selling the smuggled fuel and don’t pay tax. Muyambango further said those who were employed at the service stations are now roaming around the streets looking for jobs.
Taxi drivers who spoke to New Era on condition of anonymity yesterday said they now spend less money on purchasing fuel.
A 34-year-old taxi driver said ngungula creates opportunities for them to make more profit.
“We will never stop using ngungula because this is the best opportunity for us to fight poverty. Without ngungula my life would not change, we are grateful for Angolans selling fuel in our country.
Shindume said his Onhuno Service Station has eight employees and security guards, therefore, these people will lose their jobs because the service station has to close.
An unemployed woman resident of the Ondobe village who used to work at Ondobe Service Station said life was tough after losing her job.
“I am now home because the service station is not operating. We are suffering, ngungula came to create poverty for those working at the service stations,” she narrated.