Fuel prices revised

Fuel pump prices have seen yet another increase earlier this week. According to the Ministry of Mines and Energy, the main factor behind the increase is attributed to the currently weak exchange rate between the Namibia dollar and the US dollar.
The month of June saw several fluctuations in local currency against the US dollar. These fluctuations are a result of the decreased confidence in the South African economy hence the exchange rate of the Rand to which the Namibia dollar is pegged, weakened. Mine strikes in South Africa amidst a balance of payment deficit have been viewed as the main perpetrators. Other domestic factors have also surfaced which have forced foreign investors to redirect their energies to other countries further depreciating the Rand. “Since the fuel pump pricing structure in Namibia is based on import parity, it naturally means that oil companies had to buy oil at a higher price throughout the month despite a slight decrease in the international prices per barrel of crude oil,” stated the Minister of Mines and Energy, Hon. Isak Katali.