30 Sep 2016 16:30pm
WINDHOEK, 30 SEP (NAMPA) - Local fuel prices will remain unchanged for October.
The prices increased in June and July this year, remained unchanged in August and decreased in September.
The Ministry of Mines and Energy on Friday issued a statement, saying 95 Octane unleaded petrol will remain at N.dollars 10.48 per litre; diesel 500 parts per million (ppm) N.dollars 10.28 per litre; and N.dollars 10.33 for diesel 50 ppm.
Mines minister Obeth Kandjoze said there are pivotal events occurring on the global oil market.
Global oil markets are witnessing a profound change in the shape of a correction that happens once in 20 years if not more. The oil price slide, which began in July 2014, has seen major benchmarks shed over 50 per cent of their value. Due to this slide, crude oil prices have remained below US.dollars 55 for 18 months since its inception.
With oil producing countries not curbing production and supplying the global market with more crude oil, Kandjoze said supply is not an issue at the moment.
There still remains a substantial supply of oil in the market, a factor that will keep prices low for a longer period. Unless the surplus production level fails to around 500 000 barrels per day, price-supporting factors such as geopolitical risk, natural disruptions, industrial hiccups and situational demand spikes would struggle to come into play.
Motorists, the minister said, have thus been expecting pump prices to drop even further but that has not been the case because of the adverse effects of a currency and exchange factor, including citizenry.
In the period under review, the Namibian Dollar has weakened, on average, against the US Dollar, from N.dollars 13.7 in August to N.dollars 14.1 in September. That resulted in marginal over-recoveries throughout September, though not sufficient to trigger an adjustment.
Over-recoveries per product on the Basic Fuel Price (BFP) import parity landed in Walvis Bay calculated on 25 September 2016 are: 95 Octane unleaded, 0.951 cents per litre; diesel 500 PPM, 0.642 cents per litre; and Diesel 50 PPM, 2.690 cents per litre.