THE prospect of fuel prices stabilising after sharp increases over the past few months has given consumers in Namibia a slight respite from the continuous increase in prices of goods and services.
In a statement, the Ministry of Mines and Energy announced that fuel prices will remain as is for the month of May and said that a sudden stabilisation of oil prices and a slight appreciation of the Namibian Dollar against the American Dollar are factors that determined the outcome of the monthly fuel price review.
“The international oil market was hit with fears of a slow-down in oil demand after India, the world’s largest oil importer was hit by a sharp surge in COVID-19 cases. The fourth-largest importer of oil, Japan is also expected to reintroduce stringent lockdowns as a result of resurging COVID-19 cases,” the statement reads.
The resurgence of the pandemic gave rise to fears that demand for oil across Asia gave rise to the sudden stabilisation of oil prices.
The second determining factor was the appreciation of the Namibian Dollar against the American Dollar during March.
According to the statement, the currency appreciation has also contributed to the final price stabilisation which strongly manifested during April which lowered the per barrel prices for both petrol and diesel.
The current review of fuel prices in Namibia determined that there was an under-recovery of 38 cents per litre on petrol while diesel had an over-recovery of 14 cents per litre.
According to the statement, these values are relatively low and the ministry has resolved to keep the pump prices for the month of May unchanged.