Staff reporter
THE Ministry of Mines and Energy (MME) on Monday announced that both petrol and diesel prices will remain unchanged.
MME in a statement said this is despite the substantial under-recovery of 153c/l for petrol, as well as 114c/l for diesel 50ppm and 106c/l for diesel 10ppm.
The National Energy Fund (NEF) will absorb all the under-recoveries.
MME full statement can be read below:
MEDIA RELEASE
FUEL PRICE REVIEW ANNOUNCEMENT
The Ministry of Mines and Energy has completed the review of the fuel price for March 2024 and hereby informs the public of its decision.
Global oil prices are rising due to uncertainty in production and conflicting messages from OPEC, leading to supply worries. Speculation about extending OPEC+’s production cuts is adding to the uncertainty, driving crude oil prices higher.
The latest calculation by the Ministry indicates that the average price of Unleaded Petrol 95 over February 2024 stood at USD 00.118 per barrel, compared to US093.996 per barrel at the end of January 2024, indicating an increase of US06. l 22 per barrel or 6.5% over the review period. Additionally, the average price of Diesel 50ppm over February 2024 stood at USD103.752 per barrel, compared to US099.699 per barrel at the end of January 2024. This is an increase of US04.053 per barrel or 4.06% over the review period. Moreover, the average price of Diesel l0ppm over February 2024 was at USD104.826 per barrel, compared to USOl 00.916 per barrel at the end of January 2024, an increase of US03.91 per barrel or 3.87% over the review period.
Furthermore, the exchange rate figures for the period of O1-27 February 2024 indicated a 0.97% depreciation of the NAD against the USD at N$18. 9826 per USO, compared to N$ l 8.7994 per USO at the end of January 2024.
After considering all the input factors outlined in the fuel pricing model, the Ministry observed substantial under-recovery of 153 cents per litre for petrol, under-recoveries of 114 cents per litre for diesel 50ppm and 106 cents per litre for diesel 10ppm respectively.
Furthermore, taking into account the significance of ensuring the security of fuel supply in the country and maintaining the sustainability of the National Energy Fund, the Ministry resolved to raise the National Energy Fund levy by 50 cents per litre across all petroleum products. As a result, the new NEF levy will be 186.775 cents per litre for petrol and 160]75 cents per litre for diesel.
The Ministry is hereby announcing that the Petrol prices and both the Diesel grades remain unchanged. In Walvis Bay, petrol will remain priced at NS 20.78 per litre, diesel 50 ppm at NS 21.05 per litre and diesel 10 ppm at NS 21.25 per litre. The National Energy Fund will absorb the entirety of the incurred underrecoveries of 153 cents on ULP95, 114 on Diesel 50PPM and 106 cents on Diesel 10PPM, equating to N$124 million, via the fuel equalization levy, on behalf of consumers.
These adjustments will be effective as of Wednesday, March 6, 2024.
To that end, the Ministry will continue to oversee global oil market developments and making decisions that prioritize the welfare of fuel consumers in Namibia on a sustainable basis.
