WINDHOEK – The Ministry of Mines and Energy has confirmed that fuel pump prices for December will remain unchanged, as prices at the entry port of Walvis Bay remain stable at N$13.05 per litre for 95 Octane Unleaded Petrol and N$13.63 per litre for Diesel 50ppm. 

In a media statement, the mines and energy minister noted that the global oil market supply and demand remained relatively steady throughout the month of November, 2019. 

“There were no major disruptions in the market, and this has kept the prices of refined oil at relatively stable levels. Barrel prices for both Unleaded Petrol 95 and Diesel 50 ppm traded at daily averages, ranging from about US$69 to US$77. This range compares equally to the range recorded during the last review of fuel prices back in October,” read the statement. 

He added that similarly, the exchange rate between the Namibia Dollar and the US Dollar did not fluctuate much throughout the month of November. On average, the Namibia Dollar only gained minimal value against the US Dollar, from N$14.88 in October 2019 to N$14.80 per US Dollar for the period under review. This slight appreciation, said Alweendo, implies exchange rate and fuel price stability.

Meanwhile, the under-recoveries per product on the Basic Fuel Price (BFP) import parity landed in Walvis Bay as calculated at 25 November 2019 were 31.716 c/e for 95 Octane Unleaded Petrol and 9.212 c/e for Diesel 50ppm.  Under-recoveries usually call for an increase in fuel pump prices to fulfil fuel supplier cost recovery purposes. However, Alweendo stated that the National Energy Fund is financially stable and will absorb these moderate under-recoveries on behalf of consumers. He estimated that the subsidy will be in excess of N$30 million.

“The stability in fuel prices is expected to contribute meaningfully to the many economic activities that are usually rife during the end-of-the-year festive season,” Alweendo concluded.