GOVERNMENT, through the National Energy Fund, will bear the brunt of high crude oil prices of the past month, sparing consumers the fuel price hike their neighbours in South Africa had to face.
On Wednesday, the price of 95 Octane Unleaded Petrol will increase by 34 cents a litre, while 93 Octane Lead Replacement Petrol will become 33 cents a litre more expensive. The diesel price will go up by 25 cents a litre.
South African consumers recently faced an increase of 93 cents a litre, and diesel went up by 69 cents a litre.
"This time around, the prime cost for August under-recoveries will have to be paid by the National Energy Fund to an expected tune of N$30 million, which would go to all oil companies to bring oil to our shore.
"Consumers also have to, inevitably, pay their fair share of the under-recoveries, but relatively low, to avoid depleting the fund," Kahuure Kahijoro, permanent secretary of the Ministry of Mines and Energy, said on Friday.
Wednesday's increase will bring the price of 95 Octane at Walvis Bay to N$9,96 a litre, while 95 Octane will cost N$10,08 per litre. Diesel will sell for N$10,38 per litre wholesale.
Kahijoro said since the end of June, crude oil prices have reached three-month highs, "a trend that had continued on to date".
"The removal of Iran from the market due to stiffer sanctions by the USA and the European Union has its consequences being felt at the pump, with no solution in sight in the immediate to short run," he said.
