…Fuel station owners threaten to shut fuel pumps
The Fuel and Franchise Association (FAFA) of Namibia, in a meeting with its members and various stakeholders has threatened a seven-day nationwide shutdown of fuel stations, should their final offer to the Ministry of Mines and Energy not be met.
Fuel station owners requested the ministry an increase in the retail margin, saying they are drowning in debt, and some of them are going bankrupt. The fraternity requests banks and fuel wholesalers to be restricted from operating in the retail market.
“Wholesalers are operating in the retail market by providing fuel to fleet owners and transport operators at prices retailers cannot compete with, while the banks take up to 42 cents for every transaction done by debit card, “Chairperson of the Fuel and Franchise Association, Hennie Kruger said.
As the threat looms large, a social media message circulating today noted: “People just be prepared there is a big possibility that there will be no petrol sold for the whole of next week because there is a dispute between services station owners and the Namibian government. They say petrol is coming in at the port of Walvisbay at about N$8.00 a litre but service stations are not getting any profit and want to know where all the money is going.”
This week, Mine and Energy Minister, Tom Alweendo has been quoted saying government has already implemented a cutting of the levies of various institutions such as the Road Fund Administration (RFA), the Motor Vehicle Accident Fund (MVA), NAMCOR, as well as the fuel tax for the Namibia Revenue Agency (NAMRA) in order to reduce pump prices.
He however said “it would not be prudent for the government to increase the dealer margin”.