Namibia is set to increase fuel prices by 70 Namibia cents (0.04 U.S. dollar) per liter from Dec. 1 due to a hike of global oil prices, the Ministry of Mines and Energy (MME) announced Friday.
The price of gasoline at the pump in Walvis Bay will become 16.65 Namibia dollars (1.08 U.S. dollars) per liter and the price of diesel will be increased to 15.58 Namibia dollars (about 1.02 U.S. dollars) per liter, MME spokesperson Andreas Simon said, adding that fuel prices will be adjusted accordingly countrywide.
The oil subsidy becomes a heavy burden for the government’s National Energy Fund, which paid 110 Namibian cents (0.07 dollar) per liter on gasoline and 106 Namibian cents (0.06 dollar) per liter on diesel for consumers in November, Simon said. “This amounts to approximately over 154 million Namibia dollars (10.1 million dollars).”
The government has to ensure the long-term sustainability of the fund, he said.
OPEC and other oil-producing countries are set to meet on Dec. 2 to discuss production policy for January and beyond, as the global oil prices surged to multi-year highs. West Texas Intermediate crude futures hit a seven-year high of 84.65 dollars in October.