By:Hertha Ekandjo
Namibia Bus and Taxi Association (NABTA) Secretary General Pendapala Nakathingo, says Namibian drivers cannot afford a spike in fuel prices.
This comes after the Road Fund Administration (FRA) said, in order to meet a N$4.3 billion funding gap for road upgrades and maintenance, it needs an increase in the fuel levy.
The fuel levy is a fee charged on every litre of petrol and diesel sold and is a key factor in determining the price of fuel in the country.
“We cannot allow RFA to request for that. They are already receiving a lot of money which they are just splashing on unnecessary things,” Nakathingo charged.
He added that bus and taxi drivers are already finding it difficult to operate on a daily basis due to high fuel prices.
According to him, RFA does not need an increase in fuel levy prices, adding that the country is at a stage where it should consider a decrease in fuel prices.
“We cannot entertain the political affairs that are happening at Namcor now, where the people want to reconsider the issue of getting fuel from Angola. This is the time for the government to consider issues that are affecting communities, especially taxi and bus drivers,” Nakathingo said.
He added that drivers are suffering now because of fuel prices.
Currently, fuel levies accruing to the RFA are set at N$1.41 per litre of petrol or diesel.
Motorists have seen some form of stability in recent months following constant increases in the price of fuel last year.
At the start of April, the Ministry of Mines and Energy announced the petrol prices in Walvis Bay would remain at N$19.78 per litre while the price of both diesel products remained at N$20.65 per litre.
RFA CEO, Ali Ipinge fired back saying there is a notion the Fund is overcharging road users, in terms of their contribution. “If we are to charge less, or if we remain at this level, we may not be able to do these upgrades we are funding. Or more so, to make sure that we have adequately upgraded and maintained roads. That is the reason we are asking for an adjustment”, Ipinge said.
Ipinge explained Abou 55% or N$1.3 billion out of N$2.42 billion of our revenue is made up of the fuel levy income. However, in order to realise optimal funding from current RATE 60% to 70%, N$4.3 billion is needed to address the backlog needs of road rehabilitation, upgrades, and maintenance of both the national road network as well as urban roads and streets.”
Meanwhile on Friday, RFA began the N$381 million upgrading of the Peter Nanyemba road (formerly Monte Christo road).
This road from B1 interchange to Matshitshi Street Intersection in Havana Road will be upgraded to a dual carriageway to alleviate congestion especially during the peak hours and facilitate traffic from and to the Ongos Valley Development.
The 20-month upgrade project includes traffic lights, streetlights, pavements, future bus lanes, residents’ relocation and a new market.
NABTA Says Proposed Fuel Levy Increase Will Cost Drivers
