The price of fuel will go up on Monday next week for the forth time this year, Minister of Mines and Energy Erkki Nghimtina announced this week. Nghimtina said in a statement on Wednesday that the present Walvis Bay fuel prices for the controlled petroleum products, petrol and diesel, are low and are to be adjusted with leaded and unleaded petrol going up with 50 cents, while diesel will be increased with N$1. The Walvis Bay pump prices will be N$8.04 per litre for 93 Octane leaded petrol, N$8.06 per litre for 95 Octane unleaded petrol and N$9.04 per litre for diesel.

Pump prices at various inland destinations countrywide will also be changed accordingly, when transport costs are factored in.
Nghimtina cited increases on the international crude oil prices, which continue to rise as the US dollar strengthened against the Rand, causing the average Rand/US dollar exchange rate to depreciate.
“During March 2008, the crude oil prices hovered around US$105 and US$107 a barrel, driven by expectations of continued strength in global demand, especially from crude oil consumption countries such as India, USA and China and ongoing geo-political concerns, including the militant attacks against Nigeria's oil infrastructure.
These factors have impacted the import parity in a way that a higher margin of under-recoveries has been recorded in the local market,” Nghimtina said.
The under-recoveries experienced on fuel prices at the end of March may also affect the cumulative slate balance negatively if fuel prices are not increased to accommodate related increased costs, he noted further.
“This gives the indication that the present Walvis Bay fuel pump prices for the controlled petroleum products, petrol and diesel are low and are to be adjusted,” he said.
According to Nghimtina, Namibian consumers are reaping the benefits of lower prices of unleaded petrol and diesel in the Namibian market, compared to the South African consumers.
Currently, unleaded and leaded petrol in South Africa cost R80.91 per litre, while diesel is at R9.38 per litre, while in Namibia unleaded and leaded petrol costs N$8.26 per litre, while diesel costs N$9.24 per litre.