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Record oil prices push up local fuel

2021-10-05  Staff Reporter

Record oil prices push up local fuel
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On Wednesday, 6 October, motorists will be paying 30 cents a litre more for petrol and diesel. 

The increase was confirmed on Friday by the mines and energy ministry. 

Last week, international oil prices hit a three-year high, making an increase in local fuel prices inevitable. 

Crude oil pushed above US$80 a barrel in signs of a global energy crunch, which is likely to weigh on economic growth. Brent Crude, the international benchmark, rose as much as 0.9% to US$80.22 a barrel early on Tuesday, hitting a three-year high for the second consecutive day before settling 0.6% lower at US$79.09.

Mines ministry spokesperson Andreas Simon pointed out a looming energy crunch as China continues to grapple with energy supplies, as well as some countries in Europe, where international prices for refined petroleum products have been fluctuating significantly during the period under review. 

Simon noted this left a shortage of supply in the market and increased the oil prices as a result.

The domestic front petrol pump prices in Walvis Bay will become N$14.45 per litre, and diesel price will become N$14.18 per litre, with fuel pump prices countrywide to be adjusted accordingly.

A ministerial statement further emphasised an under-recovery of 48.975 cents/litre recorded on petrol, while 50ppm diesel recorded an under-recovery of 37.809 cents/litre. 

The ministry also attributed the latest international oil prices to a series of events, including a hurricane in the Gulf of Mexico and uncertainties around the outcome of the Organisation of the Petroleum Exporting Countries (OPEC)-plus meetings.


2021-10-05  Staff Reporter

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