By Petronella Sibeene
WINDHOEK
While local motorists regard as good news the recent announcement that fuel prices will drop from today at midnight, taxi and long distance fares will remain unchanged despite this being the second such reduction this year in fuel prices.
President of the Namibia Bus and Taxi Association (NABTA) Magnus Nangombe yesterday told New Era that taxi fare would remain constant despite prices going down.
Last Friday Permanent Secretary in the Ministry of Mines and Energy Joseph Iita announced that from today midnight, the Walvis Bay fuel pump price for 93 Octane leaded replacement petrol (retail), and 95 Octane unleaded petrol (retail) will decrease by 14 cents per litre while diesel (wholesale) will go down by 6 cents per litre.
This means the new Walvis Bay pump price for 93 Octane leaded replacement petrol will cost N$5.66 cent per litre while 95 Octane unleaded petrol will cost N$5.68 cent per litre. Diesel will go at N$5.90 cent per litre.
Pump prices at various inland destinations countrywide will also be adjusted.
“From the business point of view, we cannot decrease taxi fare, it is uneconomic,” he said.
Even if the pump price goes down, Nangombe argues that spare-parts, tyres and servicing a vehicle remain expensive.
Fuel prices have been volatile for some time and changing the current transport charges would be unwise, he added.
“If we change now what happens when the fuel price goes up again? It will just cause instability in the industry,” Nangombe maintained.
The ministry’s announcement will also enable public transport operators to make a profit that they can use for servicing or maintaining their vehicles in good shape for the safety of the public.
Experts say the reduction in petrol price will give relief to consumers through additional income that they could save on petrol. They would use that extra income to service their debts or spend more on the economy, therefore contributing an increase in the expenditure side of the economy.
Unfortunately, the lower income groups who use the services of taxis and buses will not benefit, as fares will stay the same.
The fishing sector, tourism and other retail sectors of the economy will benefit from the reduction – as higher petrol prices curtailed their production and operating activities. Government is also a major consumer of petrol and a reduction will help reduce its petrol expense bill. The reduction will also lessen pressure on inflation.