Another shock increase in fuel prices

05 Aug 2013 04:20
WINDHOEK, 05 AUG (NAMPA) - Fuel prices will increase by 40 cents on Wednesday, Mines and Energy Minister Isak Katali announced in a media statement issued here last week.
This means motorists will have to dig deeper into their pockets when the prices for 95 Octane Unleaded petrol, Diesel 500 parts per million (ppm) and Diesel 50 ppm increase in two days’ time.
Katali said 95 Octane Unleaded Petrol will increase by 40 cents per litre (retail), and will then cost N.dollars 11,66 per litre; while Diesel 500 ppm will increase by 40 cents per litre (wholesale) to cost N.dollars 11,82 per litre.
The newly-introduced Diesel 50ppm will also increase by 40 cents per litre (wholesale) to cost N.dollars 11,88 per litre; while the price of 93 Octane Lead Replacement Petrol, which is being phased out, will remain unchanged.
The price of 93 Octane Lead Replacement Petrol decreased by 30 cents per litre (retail) in May this year to cost N.dollars 10,74 per litre.
In June and July, 93 Octane Lead Replacement Petrol also remained unchanged.
Katali explained that internationally, the political unrest in Egypt and a strengthening of the United States of America (USA) economy, which led investors to ‘the thought of increasing oil demand’ drove prices up by more than nine per cent in July.
“Traders are taking a little breather, as speculators are beginning to inject value into the equation. Speculators were afraid that the situation in Egypt will escalate and lead to disruptions in supply during the first and second week of July,” the minister explained.
In the domestic market, the Namibian Dollar continues to fluctuate against the US Dollar.
Thus, the import parity is still experiencing under-recoveries, although the current ones are moderate.
“Through the National Energy Fund, the government will subsidise a reasonable portion of the under-recoveries, and pass the rest on to the consumers,” Katali indicated.