WINDHOEK: Consumers will once again have to dig deeper into their pockets when fuel prices increase on Wednesday.
Mines and Energy Minister Isak Katali announced in a media statement availed to Nampa on Monday that the fuel prices will increase country-wide at 00h01 on Wednesday, 12 September.
According to the minister’s statement, 93 Octane Lead Replacement Petrol will increase by 19 cents per litre (retail), bringing the new Walvis Bay pump price to N.dollars 10,15 per litre; while 95 Octane Unleaded Petrol will increase by 19 cents per litre (retail) to cost N.dollars 10,27 per litre.
The price of diesel will increase by 26 cents per litre (wholesale), meaning that it will now cost N.dollars 10,64 per litre.
Katali said the oil markets seem to have defied logic in second half of 2012 and it is evident from recent fluctuations in crude oil prices.
“Despite an over-supplied global market and a slowed global growth, which inevitably leads to a significant fall in demand,crude oil prices are stagnant at t relatively high level, thereby defying the expectations of traders,” he said.
Katali said the ministry always tries to keep pump prices at the lowest possible level with subsidies.
Guided by the interest of consumers once more, half of the under-recoveries recorded in September will have to be paid by the National Energy Fund.
He said the ministry is equally committed to ensuring that local oil industry is flourishing and it is for this reason that a three cent per litre increase in the industry margin is granted as the latest report indicates a negatives return on assets of oil companies.
The minister said this would help them upgrade their assets to international standards, comply with safety regulations and ensuring that they are doing businesses environmentally conscious.
The pump prices at various inland destinations countrywide will also be adjusted accordingly.