Govt pumps N$1bn into fuel price relief
Subsidisation
The government has paid N$1 billion in subsidies to alleviate the burden on consumers relating to fuel costs.
Mines Minister Tom Alweendo says the government has come to the aid of motorists to the tune of N$1 billion in response to skyrocketing fuel prices.
Alweendo made the remarks at an Inter-Oil State Committee meeting held in Swakopmund this week.
He explained that the assistance came through the fuel equalisation mechanism.
“In Namibia, we intervened by halving the levies imposed on the prices of petroleum products to offer relief to our consumers, among other equally important interventions through the National Energy Fund’s fuel equalisation mechanism,” Alweendo said.
The measure was a response to rising fuel costs imposed by the Organisation of Petroleum Exporting Countries (OPEC), he added.
“We ended up injecting over N$1 billion to cushion our fuel consumers against the volatility of oil prices. Our deliberate policies are always aimed at ensuring price stability and the security of fuel supply in our markets. However, it is often the continued policy choices of OPEC and other oil producers to maintain oil supply at market-stabilizing levels that undermine—perhaps unknowingly—our well-intended efforts as oil-importing nations,” he said.
Fair prices
Alweendo called for fair fuel prices, stating that it was a matter of human decency.
“I always say that business dealings must have a humane side. It should not always be about chasing larger profits by reducing crude oil production,” Alweendo said.
“While such actions may benefit a few, the majority are left to bear the pain of high oil prices and the inflationary effects on basic goods and services,” he added.
Alweendo appealed to oil-producing companies to adopt fair pricing practices.
“Perhaps we just need to reflect on this, especially now that we are gathered here today as a group of mutually aligned neighboring countries and oil industry experts,” he said.
“It gives me great joy to know that member states have once again come together to discuss key issues affecting our respective oil industries. We aim to learn from each other’s best practices, review issues that no longer align with current developments in our industries, and propose ways forward to maintain a stable, sound, and vibrant oil industry in our region,” he added.
Alweendo made the remarks at an Inter-Oil State Committee meeting held in Swakopmund this week.
He explained that the assistance came through the fuel equalisation mechanism.
“In Namibia, we intervened by halving the levies imposed on the prices of petroleum products to offer relief to our consumers, among other equally important interventions through the National Energy Fund’s fuel equalisation mechanism,” Alweendo said.
The measure was a response to rising fuel costs imposed by the Organisation of Petroleum Exporting Countries (OPEC), he added.
“We ended up injecting over N$1 billion to cushion our fuel consumers against the volatility of oil prices. Our deliberate policies are always aimed at ensuring price stability and the security of fuel supply in our markets. However, it is often the continued policy choices of OPEC and other oil producers to maintain oil supply at market-stabilizing levels that undermine—perhaps unknowingly—our well-intended efforts as oil-importing nations,” he said.
Fair prices
Alweendo called for fair fuel prices, stating that it was a matter of human decency.
“I always say that business dealings must have a humane side. It should not always be about chasing larger profits by reducing crude oil production,” Alweendo said.
“While such actions may benefit a few, the majority are left to bear the pain of high oil prices and the inflationary effects on basic goods and services,” he added.
Alweendo appealed to oil-producing companies to adopt fair pricing practices.
“Perhaps we just need to reflect on this, especially now that we are gathered here today as a group of mutually aligned neighboring countries and oil industry experts,” he said.
“It gives me great joy to know that member states have once again come together to discuss key issues affecting our respective oil industries. We aim to learn from each other’s best practices, review issues that no longer align with current developments in our industries, and propose ways forward to maintain a stable, sound, and vibrant oil industry in our region,” he added.
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