03 März 2021 | Wirtschaft

Fuel prices to create cost pressure

When compared to year ago, petrol and diesel pump prices will still be 3.1% and 4.9% lower respectively.

Belts are to be tightened and remember to factor in fuel consumption when decisions are made. Simonis Storm (SS)


Despite the big increase in fuel prices for the past two months, the impact on inflation should be relatively small.

According to Cirrus Capital (CC), the transport line in the Namibia Consumer Price Index (NCPI) basket has been deflationary for eight of the last ten months, including the last four months.

Despite the 80 cents per litre (c/l) increase, fuel prices will still be lower than a year ago. Petrol pump prices will still be 3.1% lower, and diesel 4.9% lower.

The personal transport equipment sub-item which captures the fuel price in the transport line in the NCPI basket contributes about 9.0% to the overall inflation basket.

This means that the personal transport sub-item will be less deflationary than before, and thus will act as less of a drag on inflation, CC pointed out.

Cost pressure, outlook

Fuel is an important input for many goods and services not just for farming and manufacturing, but also for the importation of goods from South Africa and the rest of the world.

Simonis Storm (SS) is expecting higher inflation to come through as cost pressure increases and transferred up the chain to the end consumer.

The already cash-strapped consumer will find it more difficult to make ends meet as they will have to fork out more money for transportation. Thus, increased pressure given evaporating disposable income and the poorest being the hardest hit, SS pointed out.

“We are expecting the global oil price per barrel to rise, on the back of increased demand, following the opening up of economies after the Covid-19 induced lockdowns, deteriorating exchange rate and under-recoveries by the Ministry of Mines and Energy, SS said.

According to Namibia Statistics Agency (NSA) NCPI, the transport category weight 14.28 points out of 100. This implies that on average, for every N$ 100 that consumers have in their wallet, N$ 14.28 is likely to be spend on transport.

Gleiche Nachricht


N$8.2 billion spent on foreign goods in Feb

vor 3 tagen - 13 April 2021 | Wirtschaft

PHILLEPUS UUSIKUFor the month of February this year, the value of imports into the country amounted to N$8.2 billion down from its level of N$9.5...

Streik bei Marmorwerken beginnt

vor 3 tagen - 13 April 2021 | Wirtschaft

Swakopmund/Karibib (er) - Angestellte des Unternehmens Best Cheer Investments Namibia haben gestern bei den Marmorwerken in Karibib die Arbeit niedergelegt. Der Streik wird andauern, bis...

Namibia ‘losses’ billions in export earnings

1 woche her - 09 April 2021 | Wirtschaft

PHILLEPUS UUSIKUNamibia lost about N$1.9 billion in export earnings in February 2021 as exports reduced by 24.6% to N$5.7 billion from its level of N$7.6...

Zimbabwe expecting tobacco boom in 2021

1 woche her - 09 April 2021 | Wirtschaft

Zimbabwe's tobacco output is expected to grow by around 9% to 200 000 tonnes this year, the industry regulator said Wednesday, providing a major source...

Heuschrecken bedecken Straße

1 woche her - 09 April 2021 | Landwirtschaft

Windhoek/Ariamsvlei (ste) • Die Heuschreckenplage scheint in Namibia nicht vorüber zu sein. Gestern berichtete die Leserin Christine van der Merwe erstaunt von massiven Heuschreckenschwärmen im...

Geingob launches Namibia Revenue Agency

1 woche her - 08 April 2021 | Wirtschaft

PHILLEPUS UUSIKUAccountability, honesty and loyalty are some of the values that will ensure that the newly launched Namibia Revenue Agency (NamRa) which will be key...

Namibia Revenue Authority officially operational

1 woche her - 07 April 2021 | Wirtschaft

PHILLEPUS UUSIKUThe long-awaited Namibia Revenue Authority (NamRA) is finally operational, following the notice by the Minister of Finance Ipumbu Shiimi on 01 April 2021.Ministry of...

Ongwediva-Handelsmesse erstmals auch virtuell

1 woche her - 07 April 2021 | Wirtschaft

Windhoek/Ongwediva (NMH/sb) • Die jährliche Ongwediva-Handelsmesse (Ongwediva Annual Trade Fair, OATF), die im vergangenen Jahr aufgrund der Corona-Pandemie ausfiel, wurde in diesem Jahr von neun...

Landlords finally on their knees

1 woche her - 06 April 2021 | Wirtschaft

PHILLEPUS UUSIKUDue to oversupply of rental properties and more bargaining power possessed by tenants, landlords are forced to settle for less in rental payments for...

Economy on life support

vor 2 wochen - 01 April 2021 | Wirtschaft

Jo-Maré Duddy – The impact of the Covid-19 pandemic, coupled with the ongoing recession, sucked more than N$5 billion out of the economy last year.Preliminary...