Fuel price increase on Wednesday

30 Oct 2017 17:20pm
WINDHOEK, 30 OCT (NAMPA) – The price of fuel is set to increase on Wednesday, forcing Namibians to dig deeper into their pockets.
Minister of Mines and Energy, Obeth Kandjoze announced in a media statement on Monday the new Walvis Bay pump prices will therefore be N.dollars 11.20 per litre for unleaded petrol; N.dollars 11.23 per litre for diesel 500 parts per million (ppm) and N.dollars 11.28 per litre for diesel 50ppm.
Kandjoze said the industry margin for fuel will increase by seven cents a litre on all price regulated fuel products, bringing the price to 91 cents per litre from the current 84 cents per litre.
Kandjoze said the basic fuel price unit rate slate calculations for the past month recorded under-recoveries on all price regulated petroleum products.
The under-recoveries recorded are sufficient to trigger an increase in local pump prices, he noted.
Kandjoze said the average exchange rate moved up from N.dollars 13.1485 to about N.dollars 13.5553 per US dollar over the period reviewed.
“The depreciation of the Namibian Dollar against the US Dollar, coupled with the fact that there was no upward adjustment for October 2017 prices despite the under-recovery situation back then contributed to the higher under-recoveries recorded during the current period,” he said.
Fuel pump prices countrywide will also be adjusted accordingly.
The fuel pump prices for October remained unchanged after a 30 cent increase in September. Fuel prices dropped by 50 cents in July and remained unchanged in August.