The price of petrol went up by 50 cents per litre this week, making it the sixth time that it went up this year. The price of diesel also went up by 80 cents per litre. The Minister of Mines and Energy, Erkki Nghimtina said that the new price for a litre of 95 Octane Unleaded petrol in the capital is N$9.20 and 93 Octane Lead Replacement petrol will cost N$9.18. In Walvis Bay, 95 unleaded petrol is now retailing for N$9, while lead replacement petrol costs N$8.98 per litre.

Nghimtina said for the month of June, unleaded petrol and lead replacement petrol will be more than 60 cents cheaper in Namibia compared to South Africa, while diesel is four cents higher in Namibia.
“It should be emphasized that although the ministry endeavours to keep fuel prices to the bare minimum, as it has such a huge impact on the economy of the country, it will harmonize fuel prices with neighbouring states to be fair in respect of pricing mechanisms used.
However, in a politically volatile world and with little surplus capacity left, Namibian consumers are forewarned that they will have to anticipate difficult times ahead and dig deeper into their pockets as the international crude prices continue to soar,” he said.
During last month, the international crude oil prices hovered around US dollars 131, which is about N$1 024.42 per barrel.
Crude oil prices have continued to surge and supply remains tight and bullish, making it more difficult for non-oil producing countries and their economies.
Nghimtina said in Namibia’s case, the situation has contributed to import parity being negatively affected, leading to under-recoveries experienced in the local market, which necessitate the upward adjustment of fuel prices.
He said the under-recoveries experienced on fuel prices as at the end of May 2008 will impact heavily on the cumulative slate account, consequently putting the National Energy Fund under immense pressure to compensate for that while subsidizing fuel transportation to far remote areas.
He said National Energy Fund is not in a position to cushion against increasing fuel prices, meaning that fuel prices have to be adjusted with the full margin of the under-recoveries to accommodate related increased costs, and that translates into consumers bearing the full cost burden.