WINDHOEK - The Ministry of Mines and Energy has decided to keep local fuel prices stable and unchanged for April 2019. This decision comes despite the international oil market indicating that the average oil barrel prices for refined oil, as well as the average exchange rate values, have increased from final values recorded last month. 

“The volatilities in the global market impact on local pump prices. In this instance, the volatilities have shown a destabilising effect on the final pump prices set by the government, resulting in under-recoveries on all products. However, the National Energy Fund, which manages the Slate Account for fuel price stabilisation purposes, is in a healthy financial position, and the ministry has thus resolved to finance the entire under-recovery amounts on behalf of fuel consumers,” said Minister of Mines and Energy, Tom Alweendo, in a statement released on Wednesday. 

Alweendo noted that during March 2019 a barrel of petrol traded at about US$73 or N$1044 at the current exchange rate of about N$14.3 per US dollar while a barrel of diesel traded at approximately US$81 or N$1 158 at the same exchange rate value. 

During February 2019, the average barrel prices were about US$66 or N$91 1 and US$77 or N$1 063 for petrol and diesel, respectively. This was at an average exchange rate of N$13.8 per US dollar. 

According to Alweendo, the increase in oil prices is attributed to the Organisation of Petroleum Exporting Countries (OPEC)’s supply cuts and US sanctions against producers Iran and Venezuela, whereas the Namibia dollar depreciation against the US dollar is attributed to general concerns of a slowdown in global growth which pushed investors away from riskier assets.