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Fuel prices to increase by N$1.52 while diesel will go up by N$0.72

Fuel prices to increase by N$1.52 while diesel will go up by N$0.72

Staff Reporters

IN response to substantial under-recoveries and the adjusted Namport levy, the Ministry of Mines and Energy has announced an increment of N$ 1.52 on petrol prices and an increase of 72 cents on diesel prices per litre.

The National Energy Fund will absorb the remaining under-recoveries. These adjustments will come into effect on Wednesday, April 3, 2024. Consequently, in Walvis Bay, the new prices will be N$ 22.30 per litre for petrol, N$ 21.77 per litre for diesel 50 ppm, and N$ 21.97 per litre for diesel 10 ppm. Fuel prices in other regions of the country will be adjusted accordingly.

Eshioshange Ten Hasheela, Chief Public Relations Officer at the Ministry of Mines and Energy, elaborating on the reasons for the fuel and diesel increase, said that global oil prices are experiencing an upward trend due to a reduction in oil supply brought about by geopolitical tensions in major oil markets, fewer operational drilling rigs, and uncertainty surrounding oil production.

The latest calculation by the Ministry indicates that the average price of Unleaded Petrol 95 over March 2024 stood at USD 102.995 per barrel, compared to USD 100.283 per barrel at the end of February 2024, indicating an increase of USD 2.712 per barrel or 2.70% over the review period. Additionally, the average price of Diesel 50 ppm over March 2024 stood at USD 100.757 per barrel, compared to USD 103.490 per barrel at the end of February 2024. This is a decrease of USD 2.733 per barrel or 2.64% over the review period. Moreover, the average price of Diesel 10 ppm over March 2024 stood at USD 102.052 per barrel, compared to USD 104.622 per barrel at the end of February 2024, indicating a decrease of USD 2.57 per barrel or 2.46% over the review period.

Hasheela further said that the exchange rate figures for the period of March 1-25, 2024, indicated a 0.93% appreciation of the Namibian dollar against the USD, at N$ 18.8322 per USD, compared to N$ 19.0091 per USD at the end of February 2024.

“Having considered all the input factors mentioned above into the fuel pricing model, the Ministry added significant under-recoveries on both petrol and diesel products, amounting to an under-recovery of 227.962 cents per litre on petrol and under-recoveries of 117.839 cents on diesel 50 ppm and 113.265 cents per litre on diesel 10 ppm. In addition, the Ministry is announcing that the Namport levy is set to increase by 2 cents per litre, rising from 4.200 to 4.400, as it is adjusted annually. This levy ensures the handling and wharfage services provided by Namport,” Hasheela explained.

She concluded that in response to the substantial under-recoveries and the adjusted Namport levy, the Ministry opted for the earlier mentioned increment in petrol and diesel prices. “The Ministry wishes to highlight that Namibia, as an oil-importing country, is exposed to the developments in international oil market prices. The volatility in the supply and demand of fuel in the global oil markets has a notable impact on our local fuel prices,” Hasheela concluded.

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