Fuel prices remain unchanged

04 Nov 2013 19:10pm
WINDHOEK, 04 NOV (NAMPA) – The Minister of Mines and Energy, Isak Katali on Monday announced that fuel prices will remain unchanged for November.
This means pump prices at Walvis Bay will remain at N.dollars 11,66 per litre of unleaded petrol; N.dollars 12,27 per litre of Diesel 500 parts per million (ppm); and N.dollars 12,33 for Diesel 50 ppm.
The announcement will come as a relief for vehicle owners who are already feeling the pinch due to the current pump prices.
Katali said in a statement issued on Monday that after the United States of America (USA) government shutdown and threat of a treasury default held crude oil market participants hostage for half of October this year, oil speculators finally felt confident enough to test the downside of the short-term range after lawmakers reached an agreement to temporarily end the crisis.
He explained that speculators hit the market hard on the notion that the government shutdown weakened the already fragile economy, leading to a possible drop in demand for crude oil and weakening of the US currency.
“As a result, the Namibia dollar has relatively strengthened which positively reduced some of the basic fuel prices inputs,” he said.
Katali noted that during the month of September this year, Namibia observed light under-recoveries, “but Government through the Ministry of Mines and Energy had to subsidise and keep fuel prices unchanged”.
“Currently, slight over-recoveries are being observed, but again the ministry will keep the fuel prices unchanged in order to let our equalisation fund grow and help again during difficult times,” he said.