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Namibia fishing companies suffer from rising oil prices by Natalia Real April 24,2012   |  Source: FIS

The fishing sector in Namibia is expecting a drop in productivity for 2012 if fuel prices remain high. Prices have already gone up this year.

Already, 2011 brought massive losses for the sector precisely because of high fuel costs. Lüderitz-based fishing companies paid the price.

These firms must factor in an additional 6 per cent rail tariff hike because they are serviced by inland depots, such that their fuel costs much higher than for fishing companies based out of Walvis Bay.

"The increase [in fuel prices] had a huge negative impact on the growth of the fishing industry in 2011," Fisheries Minister Bernhard Esau told Parliament last week, New Era reports.

The last price increase this year came on 11 April. The energy ministry took the price up by NAD 0.20 (USD 0.03) per litre for both lead replacement and unleaded petrol and a NAD 0.10 (USD 0.01) for diesel.
Fuel barrels. (Photo: Stock File)

Although the ministry would subsidise these changes with money from the National Energy Fund -- a subsidy of NAD 0.18 (USD 0.02) per l of petrol and NAD 0.8 (USD 0.10) per litre of diesel -- the medium-term impact remains harmful.

Fuel is the single biggest operational expenditure for hake fishing companies, taking up as much as 30 per cent of total operational

 

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