Fuel price up on Wednesday
03 Feb 2014 19:10pm
WINDHOEK, 03 FEB (NAMPA) - The price of fuel will increase on Wednesday this week.
The last increase in the price of fuel was in August last year, and it remained unchanged since September that year.
At Wednesday 00h01, 95 Octane Unleaded Petrol will increase by 38 cents per litre (retail) to cost N.dollars 12.04 per litre, and Diesel 500 parts per million (ppm) will increase by 30 cents per litre to cost N.dollars 12.57 per litre.
The newly introduced Diesel 50ppm will increase by 34 cents per litre to cost N.dollars 12.67 per litre.
Making the announcement in a media statement issued on Monday, Minister of Mines and Energy Isak Katali said although crude oil prices in the oil region have been stable at the beginning of December last year, it has become a clear signal of an increase in crude oil prices.
He said the exchange rate between the Namibian dollar and the United States (US) dollar has depreciated greatly due to labour tensions in the South African labour market, thereby threatening the price of imports in the local market, and the oil industry was no exception from these adverse effects.
This led to slight under-recoveries in the local oil industry in the period under review, and when this happens, fuel pump prices are expected to be adjusted upward so as to compensate for the cost incurred by oil companies to bring oil to our shore and keep the country supplied with enough fuel throughout the festive season, he said.
Katali noted that the government will once more bear half of the cost of the resultant under-recoveries recorded.