Petrol prices will decrease by N$1.20 cents per litre, and both diesel 50ppm as well as diesel 10ppm prices will decrease by N$1.10 cents per litre. The decreases, effective as of Wednesday, 4 September, are made possible by what the energy ministry terms “improved market conditions”. These include a lower demand for oil, and a decline in freight rates. 

Over the course of August, global market prices have been influenced primarily by developments in the Chinese economy, the end of the peak gasoline consumption, and the so-called driving season, which has driven prices down. 

In a statement issued Friday, the mines and energy ministry explained that the oil shipping market is also experiencing significant declines in freight rates due to the lower demand for oil which the international market has been recently encountering. In summary, the world is consuming less oil, and markets are reacting with a fall in prices to align with lower demand. 

Another factor that worked in favour of lower domestic fuel prices was a slight appreciation (0.89%) of the Namibia Dollar against the Greenback. 

The ministry added that according to its latest calculations, the average price of Unleaded Petrol 95 over August was US$91.048 per barrel, indicating about a 7% decrease compared to July. Meanwhile, the average price of Diesel 50ppm and Diesel 10ppm during August 2024 decreased by just over 6%, compared to July.

“After observing the results of the aforementioned input factors and other parameters, the output of the fuel pricing model recorded an over-recovery of 140.667 cents per litre for petrol, 113.973 cents per litre for 50ppm diesel, and 121.468 cents per litre for 10 ppm diesel,” the ministry added. 

It further stated it is pleased that market conditions have improved for price-takers like Namibia, and remains hopeful these favourable conditions will continue.