Fuel price hike takes merry out of Xmas
26 November 2021 | Economics
The ministry of mines and energy this afternoon announced the country’s eight fuel price increase for the year.
In December 2020, petrol cost N$11.35/l at Walvis Bay. This December the price will be N$15.65/l – an increase of nearly 38%. Diesel will cost N$15.58/l at Walvis Bay this festive season, up nearly 37% from the N$11.38/l last December.
Two drivers fuelled the hike, the senior public relations officer of the ministry, Andreas Simon, explained in a statement. OPEC members have still not agreed to increase supply in the market owing to prospects of surging Covid-19 cases, which will depress demand. In addition, the Namibian dollar depreciated against the US dollar to N$15.35 compared to N$14.85 in October.
“Even though fuel prices are facing an upward adjustment, government, through the National Energy Fund (NEF), will cover the entirety of the under-recoveries recorded for the month of November 2021 on behalf of fuel consumers through the fuel equalisation levy. This amounts to approximately over N$154 million,” Simon said.