All fuel prices across the country will remain unchanged for June. This means the pump prices at the port of entry in Walvis Bay will stay at N$23 for petrol, diesel 50ppm will remain at N$22.17 per litre, and diesel 10ppm at N$22.37 per litre.
During the month of May, international fuel prices decreased slightly, while there was a marginal appreciation of the Namibia Dollar against the US Dollar.
These factors, the mines and energy ministry stated, augur well for Namibia as an oil-importing country.
“Notwithstanding the oil production cuts by some OPEC+ members, crude oil prices have declined due to the cumulative oversupply of oil by major oil-producing countries and other non-OPEC members, which has outpaced the global demand. Additionally, the passthrough effects of the depreciation of the US Dollar against the South African Rand/Namibia Dollar contributed to the products becoming relatively cheaper over the review period,” the ministry stated.
A ministerial review of international fuel prices showed that all prices per barrel for all grades of fuel, namely Unleaded Petrol 95, Diesel 50ppm and Diesel 10ppm, were down about 8% during May. Also, there was a marginal appreciation of 2.6% of the Namibia Dollar versus the US Dollar.
“Having considered all the input factors mentioned above into the fuel pricing model, the ministry noted over-recoveries on both petrol and diesel products, amounting to an over-recovery of 52.747 cents per litre on petrol and over-recoveries of 86.103 cents on diesel 50ppm and 98.120 cents per litre on diesel 10ppm. Nevertheless, the observed over-recoveries remain temporary in nature, given the elevated prevailing market volatilities. In this context, the recorded over-recoveries provide an opportunity to rebuild a healthy balance of the national slate account to boost our capacity to better absorb future market volatilities,” the ministry stated.