DRY TANKS: Service station operators across the country threatened to close shop for seven days.  Photo Otis Daniels
DRY TANKS: Service station operators across the country threatened to close shop for seven days. Photo Otis Daniels

Service stations threaten to shut down

Owners claim selling fuel at loss
Owners of filling stations across the country want government to approve a higher pump price, or they will close shop.
Adam Hartman
Service station operators across the country threatened to close shop for seven days if government does not address the price the industry is "forced" to sell petrol for, which they claim is negatively affecting their profits.

The Fuel and Franchise Association of Namibia (Fafa) on Monday met with the mines and energy ministry to discuss the loss the industry is trading at due to increasing fuel prices, and the levies in between that are leading to a reduction in businesses' profits.

Representatives of Fafa apparently informed the industry that the 'strike' will start next week if government, which is the fuel price regulator, does not attend to their concerns.

Attempts to get hold of Fafa chairperson Hennie Kruger were unsuccessful, but retailers Namibia Media Holdings spoke to said the exercise is aimed to force government to realise how important the sector is, and that it needs intervention to stay afloat.

"It is government that tells us for how much we can sell our fuel for, and therefore they need to address it. Every time when the fuel prices increase, the profit margin decreases. We are trading at a loss," one operator said.

There have been several audio messages circulating on social media warning the public to fill up their vehicles because of the possible strike. Some claim that while petrol is delivered to Walvis Bay at about N$8 per litre, pump prices stand at N$22 a litre, and only about 5% of that is profit permissible to traders.

"Where does all the other costs come from and go to - from N$8 to N$22?" a person asked in one of the recordings.

Another retailer said they are being "strangled" by government's regulation, and that is why they are now "fighting back".

The Namibian consumer's price for fuel is based, amongst other things, on the basic fuel price (the price fuel is landed for in Namibia through Walvis Bay); a Southern African Customs Union levy; fuel tax; a road users' levy, and a fuel levy.

Don’t panic

When approached for comment, Petroleum Commissioner Maggy Shino said "there is no need for panic".

According to her, the ministry and Fafa had a meeting and agreed on a position going forward.

She explained that the issue is that because there has been no dealer margin increases, retail businesses have been experiencing economic difficulties, hence Fafa requested for an increase.

"Government's position is that under the current economic circumstances whereby the fuel prices have been increasing in the past few months, the current conditions cannot permit government to increase any margins," she said.

It was therefore agreed for the situation to be reconsidered when fuel prices stabilise.

When a relief in prices is achieved, a margin increase will be considered, she said.

Dealers are not confident of the agreement, however, as they find themselves in a predicament with “no sight of any relief soon”.

"We may still have to close shop to put pressure on government. They need to feel the effect. We don't want to hurt the consumer, but we need to put pressure on a government that wants to have a say in our business," a retailer said.

‘Can’t say no’

Namibia Media Holdings understands Fafa represents a majority of the industry. Other sources within the industry said that not all members of Fafa are in agreement with the planned action, and it is doubted whether such action would bear fruit.

One source said they cannot afford to close shop, especially considering that they are situated along a major corridor that sees a lot of traffic - including trucks - to and from the north.

"If they come stop here, I cannot say no. And even if I say no, there will be another fuel station that will take my customers," the source said, adding that consumers can be assured that even if the strike does take place, there will still be fuel available elssewhere.

National Petroleum Corporation of Namibia (Namcor) spokesperson Utaara Hoveka declined to comment, but indicated that Namcor would not participate in such action.

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Namibian Sun 2024-03-28

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Katima Mulilo: 19° | 37° Rundu: 17° | 33° Eenhana: 18° | 33° Oshakati: 20° | 31° Ruacana: 19° | 33° Tsumeb: 17° | 29° Otjiwarongo: 16° | 28° Omaruru: 18° | 31° Windhoek: 17° | 28° Gobabis: 17° | 28° Henties Bay: 16° | 19° Wind speed: 24km/h, Wind direction: S, Low tide: 10:54, High tide: 04:57, Low Tide: 22:58, High tide: 17:16 Swakopmund: 15° | 17° Wind speed: 29km/h, Wind direction: SW, Low tide: 10:52, High tide: 04:55, Low Tide: 22:56, High tide: 17:14 Walvis Bay: 16° | 22° Wind speed: 33km/h, Wind direction: SW, Low tide: 10:52, High tide: 04:54, Low Tide: 22:56, High tide: 17:13 Rehoboth: 18° | 29° Mariental: 22° | 32° Keetmanshoop: 21° | 34° Aranos: 21° | 31° Lüderitz: 15° | 29° Ariamsvlei: 23° | 34° Oranjemund: 15° | 21° Luanda: 27° | 30° Gaborone: 20° | 32° Lubumbashi: 17° | 24° Mbabane: 15° | 23° Maseru: 12° | 28° Antananarivo: 16° | 27° Lilongwe: 17° | 29° Maputo: 20° | 28° Windhoek: 17° | 28° Cape Town: 17° | 23° Durban: 21° | 25° Johannesburg: 18° | 28° Dar es Salaam: 26° | 32° Lusaka: 18° | 30° Harare: 15° | 31° Currency: GBP to NAD 23.93 | EUR to NAD 20.5 | CNY to NAD 2.62 | USD to NAD 18.98 | DZD to NAD 0.14 | AOA to NAD 0.02 | BWP to NAD 1.33 | EGP to NAD 0.39 | KES to NAD 0.14 | NGN to NAD 0.01 | ZMW to NAD 0.74 | ZWL to NAD 0.04 | BRL to NAD 3.8 | RUB to NAD 0.2 | INR to NAD 0.23 | USD to DZD 134.25 | USD to AOA 832.63 | USD to BWP 13.71 | USD to EGP 47.35 | USD to KES 130.98 | USD to NGN 1415.13 | USD to ZAR 18.99 | USD to ZMW 24.97 | USD to ZWL 321 | Stock Exchange: JSE All Share Index 73909.5 Up +0.41% | Namibian Stock Exchange (NSX) Overall Index 1516.02 Down -0.13% | Casablanca Stock Exchange (CSE) MASI 12981.98 Up +0.34% | Egyptian Exchange (EGX) 30 Index 28224.37 Down -2.87% | Botswana Stock Exchange (BSE) DCI Same 0 | NSX: MTC 7.75 SAME | Anirep 8.99 SAME | Capricorn Investment group 17.34 SAME | FirstRand Namibia Ltd 49 DOWN 0.50% | Letshego Holdings (Namibia) Ltd 4.1 UP 2.50% | Namibia Asset Management Ltd 0.7 SAME | Namibia Breweries Ltd 31.49 UP 0.03% | Nictus Holdings - Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 212.04/OZ UP +0.97% | Copper US$ 3.98/lb DOWN -0.0007 | Zinc US$ 2 449.90/T DOWN -0.27% | Brent Crude Oil US$ 87.11/BBP UP +0.84% | Platinum US$ 901.49/OZ UP +0.74% Sport results: Weather: Katima Mulilo: 19° | 37° Rundu: 17° | 33° Eenhana: 18° | 33° Oshakati: 20° | 31° Ruacana: 19° | 33° Tsumeb: 17° | 29° Otjiwarongo: 16° | 28° Omaruru: 18° | 31° Windhoek: 17° | 28° Gobabis: 17° | 28° Henties Bay: 16° | 19° Wind speed: 24km/h, Wind direction: S, Low tide: 10:54, High tide: 04:57, Low Tide: 22:58, High tide: 17:16 Swakopmund: 15° | 17° Wind speed: 29km/h, Wind direction: SW, Low tide: 10:52, High tide: 04:55, Low Tide: 22:56, High tide: 17:14 Walvis Bay: 16° | 22° Wind speed: 33km/h, Wind direction: SW, Low tide: 10:52, High tide: 04:54, Low Tide: 22:56, High tide: 17:13 Rehoboth: 18° | 29° Mariental: 22° | 32° Keetmanshoop: 21° | 34° Aranos: 21° | 31° Lüderitz: 15° | 29° Ariamsvlei: 23° | 34° Oranjemund: 15° | 21° Luanda: 27° | 30° Gaborone: 20° | 32° Lubumbashi: 17° | 24° Mbabane: 15° | 23° Maseru: 12° | 28° Antananarivo: 16° | 27° Lilongwe: 17° | 29° Maputo: 20° | 28° Windhoek: 17° | 28° Cape Town: 17° | 23° Durban: 21° | 25° Johannesburg: 18° | 28° Dar es Salaam: 26° | 32° Lusaka: 18° | 30° Harare: 15° | 31° Economic Indicators: Currency: GBP to NAD 23.93 | EUR to NAD 20.5 | CNY to NAD 2.62 | USD to NAD 18.98 | DZD to NAD 0.14 | AOA to NAD 0.02 | BWP to NAD 1.33 | EGP to NAD 0.39 | KES to NAD 0.14 | NGN to NAD 0.01 | ZMW to NAD 0.74 | ZWL to NAD 0.04 | BRL to NAD 3.8 | RUB to NAD 0.2 | INR to NAD 0.23 | USD to DZD 134.25 | USD to AOA 832.63 | USD to BWP 13.71 | USD to EGP 47.35 | USD to KES 130.98 | USD to NGN 1415.13 | USD to ZAR 18.99 | USD to ZMW 24.97 | USD to ZWL 321 | Stock Exchange: JSE All Share Index 73909.5 Up +0.41% | Namibian Stock Exchange (NSX) Overall Index 1516.02 Down -0.13% | Casablanca Stock Exchange (CSE) MASI 12981.98 Up +0.34% | Egyptian Exchange (EGX) 30 Index 28224.37 Down -2.87% | Botswana Stock Exchange (BSE) DCI Same 0 | NSX: MTC 7.75 SAME | Anirep 8.99 SAME | Capricorn Investment group 17.34 SAME | FirstRand Namibia Ltd 49 DOWN 0.50% | Letshego Holdings (Namibia) Ltd 4.1 UP 2.50% | Namibia Asset Management Ltd 0.7 SAME | Namibia Breweries Ltd 31.49 UP 0.03% | Nictus Holdings - Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 212.04/OZ UP +0.97% | Copper US$ 3.98/lb DOWN -0.0007 | Zinc US$ 2 449.90/T DOWN -0.27% | Brent Crude Oil US$ 87.11/BBP UP +0.84% | Platinum US$ 901.49/OZ UP +0.74%