Fuel prices to decrease on Wednesday

31 Dec 2018 14:20pm
WINDHOEK, 31 DEC (NAMPA) – The Ministry of Mines and Energy has announced a decrease in petrol and diesel pump prices effective from 00h01 on Wednesday.

Fuel pump prices at various inland destinations will decrease as follows: 95 Octane Unleaded Petrol decreases by 90 cents per litre (retail); and diesel (all grades) decreases by N.dollars 1 per litre (wholesale), according to a media statement issued on Monday.

Minister of Mines and Energy, Tom Alweendo said global oil prices fell by over 30 per cent, slipping into a subsiding mode to the advantage of net importers.

The projected global economic meltdown saw the demand for oil falling while oil inventories built up since October 2018, causing the price of Brent Crude, which is the benchmark of petroleum, to decrease.

Alweendo explained that the price of refined oil decreased from an average of US.dollars 81 per barrel of diesel in December 2018 to US.dollars 68 per barrel.

The price of refined petrol fell from an average of US.dollars 68 per barrel to US.dollars 59 over the same period.

“Although the exchange rate between the Namibia Dollar against the US Dollar again has weakened throughout the review period, on a month-to-month basis, from N.dollars 14.00 in November to N.dollars 14.30 in December,” the stated.

Alweendo stressed that the aforementioned conditions could not erase the gains recorded in terms of over recoveries owing to the fall in the prices of refined petroleum products.

The new Walvis Bay pump prices will be 95 Octane Unleaded Petrol at N.dollars 12.05 per litre; diesel 500 parts per million at N.dollars 13.08 per litre; and diesel parts per million at N.dollars 13.13 per litre.

This is the second decline in fuel prices since December 2018, bringing relief to consumers’ pockets, after fuel prices increased for five consecutive months since June after remaining unchanged from January this year, excluding May when only the price of diesel rose.