By Petronella Sibeene WINDHOEK – Following the decision two days ago by the Ministry of Mines and Energy to again increase fuel prices by 21cents per litre effective from midnight last night, commuters will not feel the pinch yet as taxi fares would remain unchanged for now. “Transport fares will remain the same. “We are monitoring the situation closely and this is just a fluctuation happening,” the President of the Namibia Bus and Taxi Association (Nabta) Magnus Nangombe told New Era upon inquiry Taxi fares remain at N$6.50 based on defined stopping ranks while long distance trips such as from Katima Mulilo to Windhoek would also remain constant at N$230. The bus ticket from Oshakati to Windhoek will still cost N$115. On Tuesday, the ministry said the fuel price went down in line with the drop in the international oil price. Government has reduced the fuel price by 21 cents a litre for petrol and12 cents per litre for diesel. Under the new price structure, the Walvis Bay pump price for 93 Octane petrol will be N$6.37 per litre, 95 Octane N$6.39 per litre while diesel will now cost N$6.41 per litre. Compared to neighbouring South Africa from where Namibia imports 100 percent of her fuel requirements, the price difference for 93 Octane petrol between the two countries is 7.8 percent, for 95 Octane it is 6.3 percent while for diesel it is 5 percent. This is the second price increase in less than two months. In April, prices went up by 50 cents per litre. The hike in fuel prices is due to the weakened average Rand/US dollar exchange rate, which affected the unit over/under recovery negatively and further affected the local market. This situation has further been influenced by the last ten days of March 2007, when international crude oil prices increased by more than US$9 per barrel to over US$66 per barrel due to the intense situation between Iran, other major oil-exporting nations and the western countries over Iran’s nuclear enrichment programme. The ministry warned Namibians that they will have to prepare for the unanticipated changes due to volatility in oil prices in the global market. Portfolio Manager for RMB Asset Management Namibia, Martin Mwinga, explained that the increase in fuel price is likely to affect the already pressurized inflation rate. This will directly affect the cost of other commodities in the market. Although the transport sector maintains that its fares will remain unchanged, Mwinga wondered how the sector would sustain or strive to absorb the hike. With the increase in fuel prices, Mwinga also said there is a risk that interest rates might go up.