Fuel prices will be decreased minimally, by 4 cents per litre, as pump prices will be attuned based on adjustments of new transport rates in areas where fuel is transported from inland depots via road. This is because changes in transport rates directly impact the pump price in each town.
In Walvis Bay, the price of petrol will thus become N$20.74 per litre for petrol, N$21.01 per litre for diesel 50ppm, and N$21.21 per litre for diesel 10 ppm.
This follows a ministerial review of transport rates, which play a crucial role in enabling the distribution of fuel to all different parts of the country. These rates have not been reviewed since 2007.
To that end, the energy ministry noted that petrol prices and the prices for both variants of diesel will only change with the adjustments of the Ready Reckoner Rates.
In a statement issued yesterday, the ministry has decided to extend the temporary relief margin of 20 cents per litre for another three months from February to April 2024, to oil wholesalers. This is to ensure the country continues to benefit from a stable and secure supply of petroleum products.
Meanwhile, global oil prices are on an upward trajectory due to the decline in crude oil inventories in some major international oil markets, amid geopolitical tensions in the Red Sea area which have led to armed attacks on several oil vessels operating in that area.
“The declining oil inventories, geopolitical unrest and the mixed signals on oil production emanating from OPEC (Organisation of Petroleum Exporting Countries) have all created some level of oil supply uncertainty in the market, which is presently exerting an upward pressure on oil prices,” the ministry’s executive director, Penda Ithindi, stated.
In addition, the ministry noted under-recoveries on both petrol and diesel products, amounting to an under-recovery of 44 cents per litre on petrol and under-recoveries of 33 cents on diesel 50ppm, and 28 cents per litre on diesel 10 ppm.
“The ministry will continue to monitor the market, moving forward, in hopes that the conditions will improve in favour of oil consumers,” he added.