Africa-Press – Namibia. THE Ministry of Mines and Energy has increased the price of diesel by 198 cents per litre at Walvis Bay but the price of petrol remains the same.
According to a statement issued by senior public relations officer Andreas Simon, diesel will now cost N$24,10 per litre, while petrol remains at N$20,08 per litre at Walvis Bay.
Prices inland will be adjusted accordingly.
According to the ministry, the adjustment will become effective at 00h01 on 2 November.
The latest calculations by the ministry show that the average international price for unleaded petrol 95 between 1 to 21 October was US$99,960 per barrel compared to US$98,005 per barrel at the end of September.
“This is a mild increase of about US$2 over the review period,” said the ministry.
The average price of diesel 50ppm over the period of 1 to 21 October 2022 was at US$142,984 per barrel compared to US$135,528 per barrel at the end of September, giving a much higher increase of about US$8 per barrel over the review period.
The ministry said what was worsening the situation was the exchange rate for the period, when the Namibia dollar depreciated against the US dollar at N$18,0870, compared to N$17,5851 per US dollar at the end of September.
“This currency depreciation contributed to fuel price under-recoveries and has an ultimate negative effect in terms of the pockets of local fuel consumers,” said Simon in the statement.
In addition, the public must take note that following the recommendation and advice of the Ministry of Finance, the road user charges and Motor Vehicle Accident Fund levy were reinstated at 148 cents and 50,3 cents per litre, respectively, on 5 October.
“This has also placed additional pressure on the local fuel prices paid by consumers at the pumps,” said the ministry.
“Therefore, after entering the above input factors into the fuel pricing model, the ministry recorded a combination of a low over-recovery on petrol and a high under-recovery on diesel. This is an over-recovery of 13 cents per litre on petrol and an under-recovery of about 260 cents per litre on diesel,” the ministry said.
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According to a statement issued by senior public relations officer Andreas Simon, diesel will now cost N$24,10 per litre, while petrol remains at N$20,08 per litre at Walvis Bay.
Prices inland will be adjusted accordingly.
According to the ministry, the adjustment will become effective at 00h01 on 2 November.
The latest calculations by the ministry show that the average international price for unleaded petrol 95 between 1 to 21 October was US$99,960 per barrel compared to US$98,005 per barrel at the end of September.
“This is a mild increase of about US$2 over the review period,” said the ministry.
The average price of diesel 50ppm over the period of 1 to 21 October 2022 was at US$142,984 per barrel compared to US$135,528 per barrel at the end of September, giving a much higher increase of about US$8 per barrel over the review period.
The ministry said what was worsening the situation was the exchange rate for the period, when the Namibia dollar depreciated against the US dollar at N$18,0870, compared to N$17,5851 per US dollar at the end of September.
“This currency depreciation contributed to fuel price under-recoveries and has an ultimate negative effect in terms of the pockets of local fuel consumers,” said Simon in the statement.
In addition, the public must take note that following the recommendation and advice of the Ministry of Finance, the road user charges and Motor Vehicle Accident Fund levy were reinstated at 148 cents and 50,3 cents per litre, respectively, on 5 October.
“This has also placed additional pressure on the local fuel prices paid by consumers at the pumps,” said the ministry.
“Therefore, after entering the above input factors into the fuel pricing model, the ministry recorded a combination of a low over-recovery on petrol and a high under-recovery on diesel. This is an over-recovery of 13 cents per litre on petrol and an under-recovery of about 260 cents per litre on diesel,” the ministry said.
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