No rise in fuel for May
Motorists intending to travel over the up coming holidays, can sigh a breathe of relief as the Ministry of Mines and Energy announced earlier this week that fuel pump prices for May 2016 shall remain unchanged.
The pump prices for Walvis Bay will remain pegged as follows: 95 Octane Unleaded Petrol, N$10.04 per litre; Diesel 500ppm, N$9.42 per litre and Diesel 50ppm, N$9.47 per litre. All current fuel prices throughout the rest of the country will remain unchanged.
The ministry attributed the stable fuel prices to international oil production,which has remained relatively stable over the past two months as major oil producers under the auspices of OPEC continue to manoeuvre and deliberate on the best ways possible to return the market to the desired price levels for hydrocarbons.
“The latest fuel price review indicates that the average FOB prices per barrel increased slightly by US$3 for ULP 95, US$2 and US$1 for Diesel 500ppm and Diesel 50ppm respectively. The BFP Unit Rate Slate calculations for the past month recorded under-recoveries on all the regulated petroleum products,” the ministry added.
Fuel price equalisation is the mandate of the National Energy Fund. “Fuel price equalisation is a mechanism that ensures that sharp and transient spikes in global oil prices will not have a significant effect on our transportation network, which would consequently lead to an increase in prices of goods and services, from the food on our tables to flight tickets,” said the ministry.
Furthermore the ministry said the under-recoveries recorded are sufficient to trigger an increase in local pump prices. However, the National Energy Fund will have to absorb these under-recoveries by compensating fuel importers to spare motorists high pump prices countrywide.