Mines minister Tom Alweendo has announced a countrywide fuel price increase next Wednesday. The minister said petrol will increase by 20 cents per litre and diesel by 19 cents per litre at all towns supplied from Ondangwa, which was declared a fuel town in April this year.
He also said the increase up north has to do with the adjustment of rail transport rates, as fuel is transported from Walvis Bay by rail.
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According to him when the TransNamib rail rate increased, fuel pump prices countrywide increased by 10 cents per litre for petrol and 10 cents per litre for diesel, except for Ondangwa and Walvis Bay.
He said oil companies in June paid more for fuel imports than they were being compensated for at the pump.
“That led to the significant shortfalls due to them warranting an increase of fuel pump prices,” said Alweendo, adding that “the National Energy Fund will subsidise for every cent due to oil companies that would otherwise have triggered a price increase” in other commodities an basic products, which would have been impacted by the fuel price increase.