This mines and energy ministry has corrected a statement sent out on Monday, and has noted that fuel prices at Walvis Bay will remain unchanged at N$20.78 per litre for petrol, N$21.05 per litre for diesel 50ppm, and N$21.25 per litre for diesel 10ppm. 

At the same time, the ministry has reviewed transport rates which play a crucial role in enabling the distribution of fuel to different parts of the country from the various supply depots. 

“These transport rates have not been reviewed since 2007. The review of the transport rates was done through an industry-wide assessment, and their application has taken into account the input from the industry. As such, this entails that for all the areas which do not attract subsidies, the fuel pump prices will increase, based on the adjustments of the new transport rates,” the ministry stated.  

They have further decided to extend the temporary relief margin of 20 cents per litre for another  three months (February to April 2024) to oil wholesalers to ensure the country continues to enjoy the security of supply of petroleum products.

Meanwhile, the ministry noted that 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 the Organisation of Petroleum Exporting Countries (OPEC) have all created some level of oil supply uncertainty in the market, which is presently pushing up oil prices.