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No further fuel worries for February

No further fuel worries for February

Niël Terblanché

AS Namibians emerge from the long month of January in terms of finances, further worries about February with regards to an increase in fuel costs can be put on the back burner as fuel prices are set to remain unchanged for the coming month.

 

In a statement issued by the Minister of Mines and Energy, Tom Alweendo, in this regard he pointed out that it will be the eighth consecutive month that the fuel price will remain unchanged.

 

The minister said what changed recently is that the Ministry has decided to increase the Dealer Margin, which is the income generated by fuel retailers in Namibia, in line with the general inflation rate for 2019. Alweendo said the ministry decided to increase the margin with four cents per litre.

 

Dealers will from this month onwards receive N$1.10 per litre of fuel sold. The minister said dealers will receive the increase from 5 February 2020 onwards.

 

fuel costs February increase

 

Alweendo also pointed out that the International Maritime Organisation (IMO) set freight rates for bulk fuel by sea higher.

 

“This has been reflected in the latest Basic Fuel Price calculations conducted by the Ministry of Mines and Energy.”

 

He further stated that refined fuel traded for slightly lower during January if compared to December and that the exchange rate between the Namibian Dollar and the United States Dollar also remained fairly quite during the past month.

 

According to Minister Alweendo the National Energy Fund remained healthy despite some under-recoveries and will for an eighth month in row, absorb the cost on behalf of Namibian Consumers.

 

“The cost to the fund is estimated to be close to N$20 million,” he said.

 

However, the fuel pump prices at Walvis Bay will remain at N$13.05 per litre for 95 Octane Unleaded Petrol and N$13.63 per litre for 50ppm Diesel.