Africa-Press – Namibia. THE price of unleaded petrol 95 will increase by N$1.90, while diesel 50ppm and 10ppm will increase by N$2.40.
This significant development, which will impact the wallets of Namibian road users, will take effect from 4 October. This was announced by the Ministry of Mines and Energy’s spokesperson, Andreas Simon, who confirmed that in Walvis Bay, the new petrol price will be N$22.88 per litre, while diesel 50 ppm will be priced at N$23.15 per litre, and diesel 10 ppm at N$23.35 per litre. Fuel prices in other regions of the country will be adjusted accordingly.
Simon explained that this decision was influenced by a series of global factors, emphasising that Namibia is subject to international oil market prices and cannot influence them. He highlighted that natural disasters, such as the devastating floods in Libya, have a notable and unpredictable impact on fuel prices, serving as a reminder of the vulnerability of global energy markets to external events.
The international oil market continues to make headlines by reaching unprecedented highs. Simon explained that the primary driver behind this surge is additional production cuts implemented by Russia. He further revealed that these cuts have not only led to soaring crude oil prices but have also translated into higher costs for gas oil and gasoline at the pump.
Adding to the mounting pressure on oil prices are the catastrophic floods in Libya. Simon explained that these floods have disrupted the nation’s oil exports, significantly impacting global oil supply, as Libya is home to Africa’s largest proven oil reserves, representing 39% of the continent’s total reserves. The situation in Libya, he emphasised, is therefore contributing to the volatility of oil prices.
Simon further explained that Brent crude also recently reached a milestone, climbing nearly 2% to $92.38 a barrel. This marks the highest point in almost ten months.
He revealed that the Ministry’s calculations reveal that the average price of Unleaded Petrol 95 for September 2023 stands at USD 114.316 per barrel, reflecting an increase of approximately USD 3 per barrel or 3.4% compared to the end of August 2023. Furthermore, he added, the average price of Diesel 50ppm for September 2023 is USD 124.796 per barrel, a substantial rise of about USD 6 per barrel or 5.5% over the review period. Diesel 10ppm also saw a notable increase, reaching an average price of USD 125.712 per barrel, an increase of about USD 6 per barrel or 5.3%.
In addition to these factors, Simon highlighted that the exchange rate figures from September 1st to 22nd, 2023, indicate a 0.84% depreciation of the Namibian Dollar (NAD) against the US Dollar (USD).
The spokesperson, however, assured that the Ministry of Mines and Energy remains vigilant in monitoring the dynamic global energy landscape.
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