Diesel prices in Namibia will tomorrow dip below the intimidating N$20 per litre mark, while petrol prices are fast approaching the significant cost barrier. 

This is as the mines and energy ministry announced that petrol prices and the diesel prices of both variants (diesel 50 parts per million (ppm) and diesel 10ppm) will decrease by N$1.00 per litre. 

This means the petrol price at the port of import will be N$20.25 per litre, while diesel 50ppm will be N$19.72 per litre, and diesel 10ppm will be N$19.82 per litre. 

The effective date and time for these adjustments is tomorrow at 00h01. 

However, the ministry pointed out that the net decrease in fuel prices will vary depending on location, taking into account delivery costs.

The ministry added that it remains hopeful the market continues to improve and be favourable, particularly for net fuel-importing countries like Namibia.

The ministry further noted that international fuel prices have been on a downward trend since June 2024. 

The decline in oil prices is attributed to the lower cost per barrel of crude oil, which is forecast to continue in October. 

This is driven by slower economic activity, particularly in China, which has led to reduced global oil demand.

Meanwhile, as part of the national road maintenance needs, the ministry has increased the road user charges under the ambit of the Road Fund Administration (RFA) by 25 c/l from 198 c/l to 223 c/l.

In addition, the ministry resolved to introduce weighted fuel transportation rates for transporting fuel to replace the current rail rates applicable for fuel transportation between Walvis Bay and the inland fuel pricing depots. 

This serves as the new fuel transportation rates by road, thus achieving greater parity and fairness. 

On average, the weighted fuel transportation rates are about 21.9% higher than the current rail rates, entailing a general increase in local fuel transportation costs.