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Diesel price drops

Diesel price drops

Niël Terblanché

CONSUMERS in Namibia will benefit from a decrease of 40 cents per litre in the price of diesel that will come into effect on Wednesday.

 

Most of the goods sold and consumed by people in Namibia are imported by road from South Africa and a decrease in the diesel price will bring some relief.

 

The Ministry of Mines and Energy in a statement announced the decrease in the diesel price but also said that the pump prices for petrol will remain the same as in September.

 

During September the international price of refined petroleum products has declined in comparison to the previous months. The average international price for refined petrol per barrel was US$48.38 in August while in September the price per barrel dropped to US$46.99. Refined diesel was US$48.45 per barrel during August but the price dropped to US$42.79 in September.

 

During the same period, the exchange rate between the Namibian Dollar and the American dollar has strengthened. The Namibian Dollar appreciated from N$17.22 in August to an average of N$16.62 in September.

 

The cost of shipping refined petroleum products to Namibia has increased from 74% to 91% above the flat rate.

 

“Owing to the aforementioned factors, a combination of over- and under-recoveries was recorded,” the statement reads.

 

The energy ministry said in an effort to continue softening the burden on consumers and at the same time to ensure the sustainability of the National Energy Fund, the decision was taken to decrease the diesel price with 40cents per litre.

 

A litre of petrol at the pump in Walvis Bay will cost N$11.65 while a litre of diesel will cost N$11.58. Prices will be adjusted as the distance from Walvis Bay increases.

 

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