Diesel is coming for your pocket

An analysis by financial firm Simonis Storm highlights why the latest fuel price hike, which sees diesel spiking by N$3 a litre, poses a major threat to the broader economy. While motorists feel the pinch directly, diesel makes up about 70% of the total petrol and diesel consumed in Namibia, acting as the lifeblood for transport and supply chains. Simonis Storm points out that a loaded truck traveling from Walvis Bay to Windhoek uses about 160 litres of fuel, pushing the trip’s fuel cost from N$3 140 in March up to N$4 940 starting Wednesday. This extra N$1 800 per load places heavy cost pressures on basic staples like bread and maize meal. The analysis also notes that diesel was already 5 cents more expensive than petrol in March, but from Wednesday, that price gap widens significantly to N$2.28, mirroring trends last seen during the global oil shocks of 2008 and 2022.

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