Page 6 - DMEA Week 09 2022.indd

DMEA POLICY & SECURITY DMEA

South Africa, Namibia to hike

domestic fuel prices this week

AFRICA BOTH South Africa and Namibia are set to see which led to a surge in crude oil prices amid sup-
petroleum prices rise this week, owing to the ply fears [and] subsequent sanctions on Russia
increase in global crude oil prices. by the USA and UK, which have contributed to
South Africa’s Mineral Resources and Energy the increase in crude oil prices,” he was quoted as
Minister Gwede Mantashe said on Monday saying in a government press release.
(February 28) that gasoline and diesel prices Meanwhile, Namibia’s Ministry of Mines
were scheduled to increase as of March 1, with and Energy announced its own plans for a price
the new prices taking effect on Wednesday. hike on Monday (February 28). It stated that
The retail price of both grades of gasoline retail prices for gasoline and diesel would rise
will climb by ZAR1.46 ($0.094) per litre, he said, by NAD1.20 ($0.081) and NAD1.30 ($0.087)
while the price of 0.05% (500 ppm) at 0.005% per litre respectively, bringing retail pump prices
(50 ppm) diesel will go up by at least ZAR1.44 up to NAD17.15 ($1.15) and NAD17.28 ($1.16).
($0.093) and ZAR1.48 ($0.096) per litre respec- The new rates will take effect on March 2, it
tively, he said. noted.
The price of kerosene, known locally as illu- The ministry explained its decision by point-
minating paraffin, is also slated to rise by at least ing to conditions on the global oil market, noting
ZAR1.21 ($0.078) per litre, with the single max- that supply/demand imbalances and tensions in
imum retail selling price (SMRP) going up by Eastern Europe had driven crude prices up to
ZAR1.61 ($0.10) per litre, as of March 1. their highest levels since 2014.
At the same time, the maximum retail “For oil price takers like Namibia and other
price for LPG will increase by at least ZAR0.70 non-oil producing countries, this can only
($0.045) per kg. Mantashe attributed the increase mean that domestic oil prices will keep shooting
to a combination of factors, including bullish upwards until there is some form of stability in
sentiment on the global crude oil market. the market, which appears to be highly unlikely
“The main reasons for the fuel price adjust- in the foreseeable future,” Simeon Negumbo,
ments are due to the average Brent crude oil the ministry’s executive director, was quoted as
price, which increased from $93.00 [per barrel saying by the Namibia Economist. “[We] have
to] $96.47 during the period under review and found ourselves in a very difficult global oil mar-
the escalating crisis between Russia and Ukraine, ket environment.” ™

P6 www. NEWSBASE .com Week 09 03•March•2022