WINDHOEK, March 27 (Xinhua) -- Namibia has approved a 50 percent reduction in fuel levies for three months beginning in April to cushion consumers from rising global oil prices triggered by escalating geopolitical tensions in the Middle East, the Ministry of Industries, Mines and Energy said Friday.
Speaking at a media briefing in Windhoek, Minister of Mines and Energy Modestus Amutse said the measure is necessitated due to the high price volatility of petroleum products, which resulted from the ongoing geopolitical tensions in the Middle East.
"Therefore, to offer relief to fuel consumers at the pumps, the cabinet deliberated on the matter and resolved to intervene accordingly," Amutse said while announcing the country's April fuel price review.
According to Amutse, fuel pump prices will, however, increase from April 1 due to higher import costs. Petrol prices will increase by 2.50 Namibian dollars (about 0.15 U.S. dollars) per liter, while both diesel grades will increase by 4 Namibian dollars per liter.
The minister said the remaining under-recovery of approximately 500 million Namibian dollars will be absorbed by the National Energy Fund to limit the impact on consumers.
Following the adjustments, fuel prices in Walvis Bay will be set at 22.08 Namibian dollars per liter for petrol, 23.63 dollars per liter for Diesel 50ppm, and 23.73 dollars per liter for Diesel 10ppm, with prices across the rest of the country adjusted accordingly.
Namibia relies entirely on imported refined petroleum products, making domestic fuel prices vulnerable to global market fluctuations.
Amutse said the ministry will continue to monitor developments and implement measures where possible to cushion consumers while ensuring the security of fuel supply. ■