Motorists will have to dig deeper into their pockets when fuel prices increase next week.
The fuel price will increase on Wednesday (03 July) at 00h01, Mines and Energy Minister Isak Katali announced on Friday.
The statement said 95 Octane Unleaded Petrol will increase by 61 cents per litre (retail) and will then cost N$11,74 per litre, while Diesel 500 parts per million (ppm) will increase by 51 cents per litre (wholesale) to cost N$11,42 per liter.
The newly introduced Diesel 50ppm will increase by 51 cents per litre to cost N$11,48 per liter, while the price of 93 Octane Lead Replacement Petrol, which is being phased out, will remain unchanged .
The price of 93 Octane Lead Replacement Petrol decreased in May by 30 cents per litre (retail) to cost N$10,74 per litre.
Katali said the month of June has seen fluctuations in the exchange rate between the Namibian Dollar against the United States (US) Dollar, hovering above N$10,02 in the last quarter of the month.
“The depreciation was initially attributed to mine strikes in South Africa, whose economy is closely linked to the Namibian economy, and now there appears to be so many domestic factors that are just not enticing any confidence in foreign investors to help strengthen the currency,” he said.
The minister noted that since the fuel pricing structure in Namibia is based on the import parity, it naturally means oil companies had to buy oil at a higher price throughout the month despite a slight decrease in the international price per barrel of crude oil.
While depreciation in the local currency helps boost exports on the one hand, the minister said it weakens the country’s international purchasing power on the other hand, thereby pushing commodity prices up, including oil.