Fuel price to remain unchanged for July

01 Jul 2019 14:20pm
WINDHOEK, 01 JUL (NAMPA) - The Ministry of Mines and Energy has announced that petrol and diesel pump prices will remain unchanged for the month of July.
In a media statement issued on Monday, Minister of Mines and Energy Tom Alweendo said during the month of June, the oil market was relatively favourable to net importers.
“On average, the oil price fell slightly below US$75 from the beginning of June due to slow global demand for the product and an increase in the inventories of oil in the United States of America,” said Alweendo.
He said that in June the exchange rate between the Namibian dollar and US Dollar slightly weakened from N.dollars 14.31 to N. dollars 14.60, but it was not weak enough to substantially escalate the cost of importing fuel to Namibian shores into under-recoveries.
“Filtered through the local market, over-recoveries were recorded during the period under review,” he said.
Over-recoveries trigger a fuel price reduction in the local market.
However, due to potential risks that there will be a sharp oil price increase in the weeks ahead and due to the potential risk of political tension between USA and Iran, the minister said the National Energy Fund will absorb the over-recoveries in order to strengthen its financial capacity to subsidise possible under-recoveries in the months ahead.
“Based on the aforementioned, the ministry will thus keep the fuel prices for the month of July 2019 unchanged,” he said.
This means for July, Walvis Bay pump prices will remain at N.dollars 13.05 per litre for 95 Octane Unleaded Petrol and N.dollars 13.63 per litre for diesel 50 parts per million (ppm).