All eyes on the new fuel prices

Motorists will be eager to find out today what the Ministry of Mines and Energy decision is regarding fuel prices for September. During August, motorists got some relief as the ministry decided to leave fuel prices unchanged.The price of petrol remained at N$22.28 per litre, while diesel stood at N$22.77 per litre in Walvis Bay, which is the port of entry. The temporary reduction in fuel levies was also extended.According to the Namibia Statistics Agency, inflation during July 2022 was mainly driven by the transport category.The transport category carries the third largest weight of 14.28 in the Namibia Statistic Agency consumer basket.This implies that for every N$100 that consumers have in their pockets, N$14.28 is likely to be spent on transport.Operation of personal transport equipment, which captures fuel, recorded an inflation rate of 35.5% in July 2022.In South Africa, fuel prices are expected to decrease, according to Fin24. “According to the latest data from the Central Energy Fund, the price of 95 unleaded petrol is expected to fall by around R2.35 a litre on Wednesday. The price of 93 petrol could drop by around R2.18 a litre. Diesel looks set to be reduced by between 77 cents (c) and 87c a litre. The price of illuminating paraffin is also on track to fall by 82c a litre,”Fin24 reports.The Automobile Association (AA) says the price for 95 fuel in Gauteng looks set to drop from its current R25.42/l to R23.07/l."This is cheaper than the June price of R24.17/l but still significantly higher than R21.84/l May pricing. It is also way off the January pricing of R19.61/l. Nevertheless, any decrease to fuel prices is good news," notes the AA.InvasionAfter hitting a high of US$123 a barrel in March, following Russia’s invasion of Ukraine, oil prices slumped to US$92 in August amid concerns about the weak state of the world economy and the possibility about a new nuclear deal between Iran and the West. A deal would mean that Iran&#039;s crude output of 2.5 million barrels per day would no longer be under international sanctions and help relieve supply constraints that have been pushing up prices. On Friday, Brent crude oil was trading around US$95 a barrel. Meanwhile, the rand, which started August at around R16.60/$, has since crashed through R17.30 on Friday amid expectations that the US will keep interest rates higher for longer. "Although we are expecting fuel to be cheaper in September, we remain concerned about the overall high prices which impact on all consumers. The price hikes in June and July will continue to impact the economy, and on the financial situation of all South Africans. A sustainable solution to mitigating rising fuel costs is still necessary and until that solution is found, citizens will be at the mercy of fuel price hikes," said the AA.It wants government to review the fuel price urgently, but doesn&#039;t believe scrapping the General Fuel Levy is the solution."We note the calls by those who say this is a way of reducing the fuel price but in our view this will not solve the problem; it will simply force government to find alternative ways to collect the revenue generated by this tax. Instead, the structure and composition of the fuel price must be considered, along with a deeper interrogation of how government currently allocates its funds," says the AA.-Additional reporting by Fin24

All eyes on the new fuel prices

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All eyes on the new fuel prices

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