MOTORISTS will be spared economic hardship as fuel prices will remain unchanged for the month of January.
The price of petrol and diesel will still cost N$11.35 per litre and N$11.38 per litre respectively at the pumps in Walvis Bay.
The spokesperson of the ministry of mines and energy, Andreas Simon in a statement said on the local front, a host of factors influences fuel pump prices, however, during the month of December, the international price of refined oil and exchange rate between the Namibian dollar and the US dollar had a bearing on fuel prices.
Simon stated that during the month of December 2020, the international price for refined petroleum products increased in comparison to the previous months.
The average international price for refined petrol was US$ 51.82 per barrel in December compared to US$ 44.15 in November 2020, while that of refined diesel was US$ 53.53 per barrel in December compared to US$ 44.79 in November.
During the same period, the exchange rate between the Namibian dollar and the US dollar strengthened. It appreciated on average from N$ 15.50 in November to N$14.92 in December. This appreciation helped keep under-recoveries at an acceptable level.
“Owing to the aforementioned factors, the month of December recorded under-recoveries on both petrol and diesel. An under-recovery of -25.746 c/l was recorded on petrol while 50 ppm diesel recorded an under-recovery of -48.685 c/l”. Simon stated.
Simon added that the ploughing season is upon us and diesel is one of the petroleum products largely used by the agricultural sector. Moreover, he stated that the economy is still limping in the COVID-19 climate and thus it is not governments intention to place an additional burden on consumers. “It is for that reason that the fuel review committee of the ministry has decided to keep the fuel pump prices for January 2021 unchanged and to finance the recorded under-recoveries from the National Energy Fund (NEF)” Simon concluded.