WINDHOEK – The Ministry of Mines and Energy this week confirmed that fuel pump prices for August will remain unchanged. This means that fuel pump prices in Walvis Bay will be N$13.05 per litre for 95 Octane Unleaded Petrol while Diesel 50ppm will remain at N$13.63 per litre. Fuel pump prices countrywide will as also remain unchanged.

 According to a statement by mines and energy minister, Tom Alweendo, the decision was taken to maintain a stable fuel pricing framework throughout the country.

Alweendo noted that tensions in the Persian Gulf region resulted in uncertainty in the global oil market, which caused worrisome but below drastic increases in the average barrel prices of refined products.
Unleaded Petrol 95 (ULP95) traded at an average price of US$75.158 per barrel while Diesel 50 ppm traded at an average price of US$ 77.465 per barrel. In contrast, the average prices per barrel during June 2019 were US$69.439 and US$ 74.544 for ULP95 and Diesel 50 ppm respectively.

He added that the average exchange rate, however, showed promising signs since the last review. The Namibia Dollar appreciated against the United States Dollar at an average of N$14.0284 per USD. In contrast, the average exchange rate for June 2019 was N$14.5684 per USD. 

“This analysis entails that the current increases in barrel prices are countered by the appreciation of the Namibia Dollar against the USD. Therefore, the cost recovery model on which the final pump prices are based remained in a relatively stable position,” Alweendo stated. 

Alweendo continued that based on market indicators and based on the favourable over-recoveries recorded during the trading cycle under review, these over-recoveries will be channelled to the National Energy Fund for safekeeping to soften potential shocks in fuel prices in the future.