Namibian consumers will be able to breathe a little easier in the month ahead as the Ministry of Mines and Energy announced that fuel prices will remain unchanged for July.
The slight respite comes after two sharp increases in fuel prices were announced for the two previous months.
In the official announcement the Ministry of Mines and Energy said that during June 2019, the oil market has been relatively favourable for net importers of fuel like Namibia.
“On average, the oil prices fell slightly below US$ 75 due to slow global demand for the product and an increase in oil inventories in the United States. The exchange rate between the US Dollar and the Namibian Dollar has slightly weakened from N$14, 3in May to N$14, 6 in June 2109.”
According to the ministry the fluctuation was not big enough to escalate the cost of fuel imports into the under recovery territory.
“Filtered through the local market, over-recoveries were recorded during the period under review.”
However, due to potential risks that there will be a sharp oil price increase in the weeks ahead and due to the political tension between the USA and Iran, the ministerial statement said that the National Energy Fund will absorb the over-recoveries in order to strengthen its financial capacity to subsidise possible under-recoveries in the months ahead.
“Based on the aforementioned, the ministry will thus keep the fuel prices for the month of July 2019 unchanged.”
Pump prices Walvis Bay will remain at N$13, 05 per litre for 95 Octane Unleaded Petrol and N$13, 63 per litre for 50 ppm diesel.