No fuel decrease in sight

By Martha Nangombe

DESPITE news reports on another fuel price decrease in South Africa, local Economist Josef Sheehema says local motorist should not anticipate a fuel price decrease any time soon.

According to Sheehema, even though Namibia and South Africa have a currency peg which means changes in South African fuel prices will spillover to Namibian market.

However, Sheehema said latest directives given out by Mines and Energy Minister, Tom Alweendo stating government was looking to cancel Namcor levy might cause certain commodity prices to misbehaviour in relation to price movement in South Africa.

“Namibia and South Africa established a currency peg with a stronger or more developed economy so domestic companies can access broader markets with less risk. Currency pegs create stability between trading partners and can remain in place for decades.

“With the latest development in Namibia which revealed government is looking to cancel Namcor levy, we might see changes in certain commodities behavior disregarding any price movement in South Africa.  Hence, it is early to tell if South African fuel decrease will have an impact in Namibia due to the policy changes that affect local fuel prices,” he said

Sheehema said as the economy is on a path of recovery, the country is aligning investments with priorities to ensure a steady recovery while cultivating economic resilience.

“It is possible that Namibia will reduce the fuel prices by looking at international oil prices downward trajectory.

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