Staff Reporter
THE fuel price trends in December showed a moderate rise in diesel prices, driven by the continued uptick in global demand. In contrast, petrol prices softened due to relatively stable global supply and lower off-season demand in major consuming regions.
This was said by the Ministry of Mines and Energy in its announcement of the fuel price review for January 2025.
The Ministry said that, since oil is traded in United States Dollars in the international oil markets, the weaker Namibia Dollar has further contributed to higher diesel prices.
The Namibia Dollar traded at an average of N$17.9647 per USD, marking a 0.1% depreciation since the end of November.
The Ministry’s recent calculations show that in December, the average price of Petrol 95 is USD83.476 per barrel, a 0.3% decrease compared to November. The price of Diesel 50ppm is USD87.355 per barrel, a 1.73% decrease, and Diesel 10ppm is USD87.447 per barrel, also a 1.75% decrease compared to November.
“However,” said the Ministry, “the observed moderate decrease in diesel prices could not outweigh the currency depreciation and other factors such as landing costs. Thus, after observing the results of the aforementioned input factors and other parameters, the output of the fuel pricing model recorded an over-recovery of 17.847 cents per litre for petrol, and under-recoveries of 37.591 cents per litre for 50ppm diesel, and 28.637 cents per litre for 10ppm diesel. To that end, and taking into account the likely impact on the domestic economy and the consumers, the Ministry is hereby announcing that petrol and diesel prices for both variants (diesel 50ppm and diesel 10ppm) will remain unchanged, allowing the National Energy Fund to play its shock absorption role.”
In Walvis Bay, the price of petrol will remain N$20.25 per litre, diesel 50ppm will remain N$19.72 per litre, and diesel 10ppm will remain N$19.82 per litre.
The Ministry said it remains hopeful that the market would improve and be favourable, especially for net fuel-importing countries like Namibia.
The Ministry wished all Namibians, fuel consumers, and other key stakeholders a cheerful festive season and a prosperous 2025, urging them to travel and drive safely, putting safety first!
