Walvis Bay:Rising fuel prices have significantly strained household budgets in Namibia as transport inflation has surged to 14.9%, stated Fabian Shaanika, Chief Executive Officer of the Chamber of Mines of Namibia.

According to NAMPA, Shaanika highlighted that the immediate impact of escalating fuel costs is being felt through increased transport expenses and the rising prices of essential goods and services, particularly food. This inflationary trend is putting substantial pressure on household finances and reducing disposable income.

The Chamber of Mines' September Monthly Mining Update revealed that transport inflation was the largest contributor to the headline inflation rate of 5.4% in September, up from 5.0% in August and 4.4% in July. Brent Crude oil averaged US$116.8 per barrel in September, marking a 28.5% increase from August. Petrol and diesel prices surged by 30.4% year-on-year in September.

In Walvis Bay, the cost of a litre of petrol rose to N$25.08 in September from N$19.58 in March, while diesel prices increased to N$27.86 from N$19.63. Shaanika noted that open-pit mines and those in remote areas are most affected by the rising fuel prices due to their reliance on diesel-powered equipment and long transportation distances.

Despite the weaker mining output, household impacts have been mitigated as mining operations maintain workforce levels. The geopolitical environment has also escalated the prices of crucial mining inputs, such as sulphuric acid, essential for Namibia's uranium mining.

The report detailed fluctuations in commodity prices, with gold and tin decreasing by 2% and 3% respectively in September, while copper and zinc saw increases. The persistent fuel inflation is expected to keep mining costs high, further squeezing profit margins for mining operations in the near future.