04 June 2016, Windhoek – The introduction of higher fuel prices means that inflationary pressures will start mounting again in the second half of this year, according to an analysis by PSG Namibia.
The ministry of mines and energy announced this week that domestic fuel prices will increase significantly next month.
As at 25 May, the ministry calculated under-recoveries of roughly 77 cents per litre and 103 cents per litre for petrol and diesel, respectively.
Petrol prices however only increase by 60 cents per litre and diesel prices by 70 cents per litre, effective 1 June.
The ministry said the rise in fuel costs was due to the recent recovery in global crude oil prices, but noted that things could have been better if it wasn’t for the exchange rate that deteriorated in May.
The ministry also highlighted that the huge under-recoveries that were witnessed a year ago means that consumers pay a share of the fuel price, while the National Energy Fund subsidises the shortfall.
- The Namibian
