In an effort to maintain price stability in domestic fuel market, the price of fuel stay untouched.
The Ministry of Mines and Energy has, through its monthly fuel price review, resolved to keep fuel pump prices unchanged countrywide for the month of June 2020.
This means that fuel pump prices at the port of entry in Walvis Bay will remain at N$10.35 per litre on petrol and N$11.13 per litre on diesel.
According to a statement by ministry spokesperson Andreas Simon, the monthly review was made taking into account the need to ensure the orderly importation of fuel products into the country.
Simon noted that the alliance between the Organisation of Petroleum Exporting Countries (OPEC) and independent oil producers such as Russia, reached an agreement during April to cut oil production by close to 10 million barrels per day in May and June as a response to falling oil demand caused by the coronavirus pandemic.
These cuts are expected to aid the recovery of crude prices on the supply side of the crude oil business equation. Saudi Arabia, the biggest oil producer in OPEC, has further announced to cut production by one million barrels per day in June.
“On the demand side of the refined products business equation, increases are expected in the near term as more and more countries continue to ease their respective lockdown restrictions,” read the statement.
In terms of the international money market, the United States Dollar maintained its status as the main currency used for conducting foreign transactions. The latest data indicates a minor appreciation (value gain) of the Namibia Dollar against the US currency, as on average, $1 exchanged for N$18.4 in comparison to an average of N$18.5 per USD at the end of April 2020.
The energy ministry’s monthly review also revealed an over recovery on diesel 50ppm of 33.024 c/e and a under recovery on 95 Octane Unleaded Petrol – 48.586 c/e on the Basic Fuel Price (BFP) “import parity price” landed in Walvis Bay as was calculated on 22 May 2020.
“The under-recovery on petrol has found the National Energy Fund in a healthy financial position and will thus, be absorbed in its entirety on the behalf of local fuel consumers. Whereas the over-recovery on diesel and under- recoveries on petrol are relatively low amounts, this does not call for a current adjustment,” Simon stated.