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Price of diesel reduced

Price of diesel reduced

Niël Terblanché

NAMIBIANS can look forward to a reduction in the prices of consumer goods because the Ministry of Mines and Energy announced that the price of diesel has been reduced by 30 cents per litre.

 

According to statement by the ministry it is eighth successive month that fuel pump prices has not been increased although adjustments in those months were warranted.

 

“The ministry like other agencies of government, is trying to help the limping economy get back on its feet by sparing motorists and other fuel consumers additional burdens in the form of fuel price hikes.”

 

Windhoek northern industrial fire China Town
Photo: Contributed

 

According to the statement by the energy ministry oil prices fell sharply in February on mounting fears about economic damage from the Coronavirus outbreak that has spread from China to over 20 other countries.

 

“This virus saw refined oil prices falling from US$70 and US$75 per barrel in January for petrol and diesel respectively, to an average of US$65 and US$67 per barrel in February. Speculations are that the prices might even fall below an average of US$50 per barrel in the near future.”

 

The ministry further said that the exchange rate between the Namibian Dollar and the United States Dollar has deprecated and, as result, offset the benefits of the decline in the oil prices, although only partially. The Namibian Dollar fell from N$14.40 in January to N$14.80 in February.

 

According to the energy ministry the price of petrol per litre will remain at N$13.05 due to marginal over-recoveries while the pump price for diesel, due to significant over-recoveries, will be reduced by N$0.30 and will henceforth cost N$13.33 per litre at Walvis Bay.