Niël Terblanché
The Ministry of Mines and Energy, in an announcement, said Namibians can expect a minor alteration in fuel prices for February 2024.
According to the Ministry’s spokesperson, Ten Hasheela, the adjustment comes as a result of changes in transport rates from inland depots to various parts of the country, an essential factor affecting fuel pricing nationwide.
He added that the slight reduction of four cents in fuel prices comes amidst a backdrop of increasing global oil prices, influenced by declining crude oil inventories and geopolitical tensions in the Red Sea region.
These tensions include armed attacks on oil vessels, contributing to a strained supply chain.
Hasheela outlined how these international dynamics, alongside OPEC’s mixed signals on oil production, have fostered a degree of uncertainty in oil supply, thus exerting upward pressure on global oil prices.
January 2024 saw the average price of Unleaded Petrol 95 reach USD93.782 per barrel, marking a 3.7 percent increase from December 2023.
Similarly, Diesel 50ppm and Diesel 10ppm experienced price increases of 1.7 percent and 2.1 percent, respectively. Additionally, the Namibian Dollar saw a 0.88 percent depreciation against the US Dollar during the same period, further complicating the pricing model for fuel in the country.
Despite these challenges, the Ministry has identified under-recoveries on petrol and diesel products, prompting a review of transport rates for the first time since 2007.
This review aims to reflect the current costs of fuel distribution more accurately, thereby affecting pump prices in various towns.
To mitigate the impact on consumers and ensure a stable supply of petroleum products, the Ministry has extended a temporary relief margin of 20 cents per litre to oil wholesalers for an additional three months, from February to April 2024.
This strategic decision underscores the government’s commitment to managing fuel prices responsibly while navigating the complexities of the global oil market and domestic economic factors.
As Namibia continues to adjust to these fluctuations, Hasheela reassured the public of the ministry’s dedication to maintaining a stable and secure supply of fuel across the nation.
Petrol, along with diesel 50ppm and diesel 10ppm, will see its prices adjusted to N$20.74, N$21.01, and N$21.21 per litre, respectively, at the pumps in Walvis Bay.
According to the ministry, the update represents a slight decrease from the January 2024 prices, which stood at N$20.78 for petrol, N$21.05 for 50ppm diesel, and N$21.25 for 10ppm diesel.
Hasheela attributed these adjustments to the recalibration of the Ready Reckoner Rates, which influence the transport levies applied to fuel distribution.
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