Namibia is in the process of creating a single importation point, where all the country’s import needs will be centred. This is according to mines and energy minister Tom Alweendo, who said the move is part of efforts to minimise fuel importation costs.
The move is in response to escalating domestic fuel prices that have increased exponentially since 2020.
In 2021, the average petrol price per litre stood at N$13.56 – and in 2022, it jumped to N$19.50.
For this year, the average is already about N$20.73. “This is really a concern, and we are trying to figure out how to manage this increase. Thus, we are trying to create a single importation point where companies can take advantage of the economies of scale at the single point. This might help reduce the fuel costs. This is something we are working on, and now we are busy consulting stakeholders to ensure it becomes sustainable,” said Alweendo on Wednesday during a Cabinet committee briefing.
The minister added that fuel increases are making it difficult for the transport economy, further impacting all other industries.
In the meantime, consumers have been granted some relief after petrol and diesel prices decreased by N$1.30 per litre for December 2023.
This means the petrol price at the port of entry in Walvis Bay is now N$21.58 per litre, diesel 50ppm is N$21.85 per litre and diesel 10ppm is N$22.05 per litre.
Announcing these price decreases last week, the mines and energy ministry also stated that the Road Fund Administration levy has been increased by 20 cents per litre from 178 cents per litre to 198 cents on all products. This was decided, considering the importance of road maintenance in the country, as well as in terms of significant over-recoveries in the fuel retail industry.