Fuel price increases inevitable

The fuel price increase that came into effect in Namibia for the month of May was necessary to counter the under-recovery situation currently experienced with fuel imports. Fuel is sold at N$1,14 per litre less than what it actually costs to bring the fuel to the pump and diesel is sold at 33 cents per litre less than what it costs to bring it to the pump.

A fuel price increase of 70 cents per litre on petrol and 20 cents per litre for diesel aims at absorbing this under-recovery and which in effect has to be carried or subsidised by the National Energy Fund (NEF). The NEF remains under pressure with such large under recoveries.
Petrol prices were driven up during April as a result of the international market price for petrol that skyrocketed. In addition, locally a 6 cents per litre increase to N$1,36 per litre of the Road Users Charge further put pressure on local fuel prices. The levy came into effect on 2 May.
Petrol at Walvis Bay now costs the consumer N$12,75 per litre and diesel N$13,33 per litre.
Fuel prices in Namibia is adjusted on a monthly basis and is set according to both international and local market conditions.