Some relief for motorists and consumers is expected on Wednesday, 4 March, as the Ministry of Mines and Energy has confirmed that Diesel 50 PPM will decrease 30 cents per litre, while 95 Octane Unleaded Petrol will remain unchanged. This means fuel pump prices in Walvis Bay will be N$13.33 per litre for Diesel, while petrol will stay at N$13.05 per litre.     

“It has been eight successive months since the ministry adjusted fuel pump prices, not because adjustments in those months were not warranted, but because the ministry, like all other agencies of government, is trying to help the limping economy get back on its feet by sparing motorists and other fuel consumers additional economic burdens in the form of fuel price hikes,” read the statement from mines and energy minister Tom Alweendo. 

The minister noted that oil prices fell sharply in February on mounting worries about economic damage from the coronavirus that has spread from China to over 20 countries. This virus saw refined oil prices falling from an average of US$70 and US$75 per barrel in January for petrol and diesel, respectively, to an average of US$65 and US$67 per barrel in February 2020. Speculations are rife that oil prices could fall to below an average of US$50 per barrel in the near future.

However, the exchange rate between the Namibia dollar against the US dollar has depreciated and, as a result, offset the benefits of a decline in oil prices, although only partially. The Namibia dollar depreciated from an average of N$14.40 for each US dollar in January to a monthly average of N$14.80 in February 2020. Alweendo explained: filtered through the local market, petrol emerged with minimal over-recoveries, while diesel recorded significantly high over-recoveries.