Fuel prices unchanged for May
28 Apr 2016 12:00pm
WINDHOEK, 28 APR (NAMPA) - The Minister of Mines and Energy, Obeth Kandjoze on Thursday announced that fuel prices will remain unchanged for May.
This means pump prices at Walvis Bay will remain at N.dollars 10,04 per litre of unleaded petrol; N.dollars 9,42 per litre of Diesel 500 parts per million (ppm); and N.dollars 9,47 for Diesel 50 ppm.
The minister said in a statement the international oil production remained relatively stable over the past two months as major oil producers under the auspices of the Organisation of Petroleum Exporting Countries (OPEC) continue to manoeuvre and deliberate on the best ways possible to return the market to the desired price levels for hydrocarbons.
Kandjoze explained that the latest price review indicates that the average freight on board (FOB) prices per barrel increased slightly by US.dollars 3 for unleaded petrol, US.dollars 2 and US.dollars 1 for Diesel 500ppm and Diesel 50ppm respectively.
The government has set up a National Energy Fund whose mandate is fuel price equalisation. Fuel price equalisation is a mechanism that ensures that sharp and transient spikes in global oil prices will not have a significant effect on our transportation network, which would consequently lead to an increase in prices of goods and services, he said.
He furthermore stated that the under-recoveries recorded are sufficient to trigger an increase in local pump prices.
However, the energy fund will have to absorb these under-recoveries by compensating fuel importers to spare motorists high pump prices countrywide.
The exchange rate over the past month dropped by 80 cents from N.dollars 15,50 to N.dollars 14,70 per US dollar which did not have a positive effect on minimising the under-recoveries recorded for the period reviewed.