New fuel prices are on the radar, according to the latest announcement from the Ministry of Mines and Energy.
The authorities say the fuel price review for April 2021 has resolved to increase the price of petrol by 50 cents per liter and diesel by 50 cents per liter. The development comes after an increase in February and March.
According to the new fuel prices list, a liter of petrol will be N$ 13.15 while diesel will cost N$ 13.18 per liter. The ministry said major price instabilities on the international oil market have not yet stabilized over the last three months, and the government has observed that the projected economic growth will be accompanied by a huge demand for oil products, further pushing international oil prices upwards.
In addition, the Ministry also noted that the National Energy Fund (NEF) will fund the under-recoveries recorded for February 2021 to the tune of N$ 107.4 million.
Meanwhile NEF will also have to avail of about N$ 90 million to finance the under-recoveries recorded for March 2021.
“The Ministry is cognisant of the fact that the increases in the local prices of fuel will continue to put more inflationary pressures on the prices of goods and services in the economy. However, due to the major dynamics of demand and supply in the international oil market at present, demand-side oil price regulators will have to continue making these hard and painful decisions,” said Andreas Simon, spokesperson for mines and energy ministry.
The current review has recorded an under-recovery of about 1 1 7 cents on petrol and about 85 cents on diesel. The significant under-recoveries indicate that the current pump prices are still not reflective of the actual prices in the market.
By GLENN-NORA TJIPURA