Staff Reporter
THE Ministry of Mines and Energy has announced a price reduction of N$1 for a litre of petrol, effective from 5 October, while diesel prices remain unchanged.
The ministry’s Senior Public Relations Officer (PRO), Andreas Simon, said that the new fuel prices in Walvis Bay will be N$20,08 per litre for petrol and the diesel price will remain at N$22,12 per litre. The rest of the country’s fuel prices will be adjusted accordingly.
Simon said that the ministry also decided to reinstate the road user charges and the Motor Vehicle Accident Fund (MVA) levy back to their original levels, while the National Petroleum Corporation of Namibia (NAMCOR) levy will remain at its current level until further notice.
The adjustments of the fuel prices came after the ministry recorded a high over-recovery of N$2,34 per litre on petrol and a low under-recovery of about N$0,33 per litre on diesel.
Simon said that the ministry’s latest calculations indicate that the average price for Unleaded Petrol 95 for the period of 1 to 23 September is at USD98,794 per barrel, compared to USD110,334 per barrel at the end of August. He explained that the average price for Diesel 50ppm from 1 to 23 September is at USD133,675 per barrel, compared to USD136,360 per barrel at the end of August.
This, Simon said, is a result of a steadily-improving international oil market, as oil prices fell during September, with the current prices signifying the lowest level since January.
“The current prices signify the lowest level since January 2022 amid rising fears that a looming economic downturn will hurt global demand in energy markets. The price of US. benchmark West Texas intermediate is now trading at about $79 per barrel, reaching its lowest point since January 2022 amid mounting recession fears. Meanwhile, the price of international benchmark Brent crude is trading at about $87 per barrel,” Simon said.
However, he added, oil prices may still rebound since the global supply could be further limited in the long-term as sanctions on Russian energy tighten amid the ongoing Russian-Ukraine war.
Simon further noted that exchange rate figures for the period of 1 to 23 September indicate that the Namibian Dollar depreciated against the US Dollar at N$17,4573 per US Dollar. This, he explained, has a negative effect on the import parity price calculations and local pump prices of fuel.
“The Ministry recognises that the situation in the international oil market is steadily improving for the better, although geopolitical instability and market volatilities might continue to have an unwanted impact on local fuel prices,” Simon added.
