Business Reporter
THE Ministry of Mines and Energy has announced that petrol and diesel prices will remain unchanged in the month of November 2024, with the observed under-recoveries set to be absorbed by the National Energy Fund. 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.
Ten Hasheela, Public Relations Officer within the Ministry of Mines and Energy, explained that international oil prices edged upwards throughout October 2024 from the lower figures recorded at the end of September 2024. These increases in the prices of oil, although moderate, are partly due to the risk premiums attached to the uncertain geopolitical situation in the Middle East, which could drastically destabilise the global oil market if it were to spiral out of control.
She added that the strengthening of the Namibia Dollar (NAD) against the United States Dollar (USD), however, has contributed to partially offsetting the increase in oil prices, as oil is traded in USD in the international oil markets, with the Namibian dollar trading at an average of N$17.5730 per USD during the period from 1 to 28 October 2024.
“The Namibian dollar appreciated by 0.28% against the USD since the end of September 2024. The Ministry’s recent calculations show that in October, the average price of petrol 95 is USD 86.985 per barrel, a 4.7% increase compared to September. The price of diesel 50ppm is USD 87.163 per barrel, a 5.3% increase, and diesel 10ppm is USD 87.360 per barrel, also a 5.3% increase compared to September. After observing the results of the aforementioned input factors and other parameters, the output of the fuel pricing model recorded under-recoveries of 6.292 cents per litre for petrol, 18.543 cents per litre for 50ppm diesel, and 10.736 cents per litre for 10ppm diesel. These under-recoveries will, however, be absorbed by the National Energy Fund,” Hasheela said.
She added that, moreover, the Ministry resolved to extend the temporary relief margin of 20 cents per litre granted to oil importers for an additional three months (October – December 2024). This relief margin is expected to be discontinued once the implementation of the Bulk Petroleum Import Coordination System becomes effective on a date to be announced in the near future.