WINDHOEK – Despite increasing oil prices creeping into the market as result of the Organisation of Petroleum Exporting Countries (Opec) cutting supply into the global market, the Ministry of Mines and Energy has decided to leave local fuel prices unchanged for the month of March. The National Energy Fund (NEF) will absorb the minimal over-recoveries as recorded.
Oil prices have been picking up since October last year which has seen prices moving from averages of US$58 and US$69 per barrel of refined petrol and diesel respectively. In January, the prices moved to averages of US$64 and US$77 per barrel of refined petrol and diesel respectively and this trend continued well into February 201 9.
In a statement released on Friday, Minister of Mines and Energy, Tom Alweendo, noted that net importers of oil are always at the receiving end of the global oil market and, therefore, remain natural price-takers of whatever prices oil exporters set. That, he noted, makes their respective local oil markets vulnerable to adverse fluctuations and shocks in the global oil market.
“Namibia is one of the net importers of refined oil and although minimal, it could not fence herself off from the effects of increasing oil prices in February 2019, caused by the manifestation of oil supply politics by major oil producers under Opec…
The exchange rate between the Namibia Dollar against the US Dollar strengthened during the period under review, but not enough to offset the adverse effects of increasing oil prices. It moved from an average of N$14.00 in January to N$13.70 in February 2019,” read Alweendo’s statement.
He explained that, filtered through the local market, gains recorded in January 2019, fell significantly by a margin of over 35 c/l on petrol and over 60 c/l on diesel.