The ministry blamed the increases on the surging crude oil prices and the appreciation of the US currency against the South African Rand. He sad crude markets “remain more tight and bullish, making it more difficult for non-oil producing countries and their economies”.
The situation has contributed to Namibia's import parity being negatively affected leading to the under recoveries being experienced in the local market which necessitates the upward adjustment of fuel prices.
“These factors have impacted on our import parity in a way that under recovery margins recorded in our local market. The aforementioned under recoveries experienced on the fuel prices as at the end of January 2008 have affected the cumulative slate negatively and this calls for fuel prices to be adjusted to accommodate related increased costs which may spiral out of control if left unadjusted,” said the ministry.