A STABLE global oil market and no significant fluctuations in the exchange rate between the Namibian Dollar and the United States Dollar means the fuel prices will remain as they are for the month of November.
According to a statement issued by the Ministry of Mines and Energy the global oil market remained stable throughout October with no major events that could have triggered strong fluctuations in the prices of refined oil.
A barrel of refined petrol traded at US$72 per barrel throughout October while in September the same barrel traded for US$73 which means the average price decreased over the last two months. The same tendency was recorded for diesel sold per barrel.
“Overall there was a slight reduction in global oil prices in October compared to September which is a good development for a net importer of oil like Namibia because it means low under-recoveries for the month.”
With regards to the exchange rate the Namibian Dollar slightly depreciated on average from N$14.80 in September to N$14.90 against the American Dollar in the period under review.
“This depreciation has however not led to adverse results in Basic Fuel Price Figures.”
Because of the slight depreciation of the Namibian Dollar the ministry did record slight under-recoveries that would naturally trigger an increase in fuel prices at the pumps.
This time around however the National Energy Fund will spare consumers the pinch at the pumps by subsidising the under-recoveries with an estimated N$40 million.
The pump prices will remain at N$13.05 per litre for 95 Octane Unleaded Petrol while 50ppm diesel will remain at N$13.65 per litre in Walvis Bay.