WINDHOEK, May 31 (Xinhua) -- Namibia plans to introduce a state-coordinated petroleum import system by the end of September as part of efforts to lower fuel costs and improve efficiency in the country's fuel supply chain, according to the Ministry of Industries, Mines and Energy.
In a statement issued late Saturday, Industries, Mines and Energy Minister Modestus Amutse said the government is at an advanced stage of finalizing Bulk Petroleum Import Coordination Regulations that will allow the state to coordinate the importation of all petroleum products into the country.
According to Amutse, the reforms are expected to reduce fuel import costs by consolidating national demand, capturing economies of scale and eliminating premiums charged above the basic fuel price.
Amutse said Namibia has been under pressure from rising global oil prices following geopolitical tensions in the Middle East, prompting the government to commit more than one billion Namibian dollars (about 62 million U.S. dollars) to cushion consumers against higher fuel prices.
"The emergency we face is not one of supply but one of cost," he said, adding that without intervention, fuel prices would have risen sharply from July, affecting transport, food and other essential goods.
Should conditions in the international oil market remain challenging, the government may invite suppliers to participate in future procurement rounds under the coordinated import framework, he added. ■