WINDHOEK - The global oil market remains favourably volatile to net importers of oil like Namibia in that oil prices have fallen during the period under review. This has resulted in the Ministry of Mines and Energy keeping petrol and diesel prices unchanged for September at N$13.05 per litre for 95 Octane Unleaded Petrol and N$13.63 per litre for Diesel 50ppm as the Walvis Bay pump prices. 

A statement released by the ministry yesterday noted that refined oil product prices fell from an average of US$75 and US$77 per barrel of petrol and diesel respectively, in July 2019, to an average of US$70 and US$75 per barrel of petrol and diesel in August. While oil prices have fallen, the exchange rate between the Namibian Dollar against the US Dollar has depreciated significantly, from an average of N$14.04 in July to N$15 in August 2019. The end results are minimal over-recoveries recorded, insufficient to warrant a price reduction.

Moreover, as outlined in the national budget statement earlier this year, the Ministry of Finance has increased and gazetted fuel tax by 25 c/l, from 65 c/l to 90 c/l, on the 2nd of August, 2019. The Ministry of Finance has autonomy over tax rate adjustments, hence the Ministry of Mines and Energy is currently compelled to increase the fuel tax by 25 c/l effective from September 01, 2019.