31 Aug 2015 16:10pm
WINDHOEK, 31 AUG (NAMPA) - The price of petrol and diesel will decrease as from 00h01 on Wednesday this week.
The Ministry of Mines and Energy (MME) announced in a media statement issued on Monday that the retail price of 95 Octane Unleaded Petrol will decrease by 30 cents per litre, and will then cost N.dollars 10.69 per litre.
The wholesale price of diesel 500 parts per million (ppm) will decrease by 40 cents per litre to N.dollars 10,42 per litre; while diesel 50ppm will decrease by 40 cents per litre to cost N.dollars 10.52 per litre.
Mines and Energy Minister Obeth Kandjoze was quoted in the statement as saying Namibian fuel pump prices continue to increase month-by-month despite the fact that crude prices are falling.
He added that this is brought about by opposites that are in conflict - Brent crude is on a decreasing trend whilst the exchange rate between the South African Rand, to which the Namibian Dollar is pegged, against the US dollar is shooting up.
Filtered through the local market, these conflicting developments have deprived consumers for months of the full benefits of lower international crude oil prices as local companies still feel the pinch of the unfavourable exchange rate as they make purchases to bring refined petroleum products to our shores, Kandjoze noted.
He stressed that it is worth noting that this time around, substantial over-recoveries were recorded to trigger a decrease and give local motorists relief at the pumps.
The minister explained that it is no longer supply and demand for oil that is dictating the price, but instead the financial markets and more importantly, money flows tied to the central bank policy.
He stressed that this can be ascertained by a session that saw prices fall as much as six per cent after a Chinese equities rout sent global markets into a tailspin.
Kandjoze said the National Energy Fund (NEF) has been requested by the Technical Committee on Strategic Projects to adjust its levy with 20 cents per litre in order to strengthen its capacity to finance the strategic fuel storage facility.
He explained that is the reason the ministry has decided to grant a 10 cent per litre increase on the NEF levy to fast-track the mobilisation of funds for that national project.