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Fuel prices to increase in June

Fuel prices to increase in June

The Ministry of Mines and Energy on Friday announced that fuel prices will increase by 30 cents per litre in June. This will be the second month in a row that fuel prices increase.

“Included in the 30 cents per litre adjustments is 6 cents per litre for the dealer margin,” the Mines Minister, Tom Alweendo said in a statement.

Alweendo said the price for both diesel petrol will be raised by another 26 cents per litre to compensate for the under recovery brought on by the depreciation of the Namibian Dollar against the United Sates dollar from April to May.

The review of fuel prices are based on the trading cycle between April 26 and May 24.

“The average exchange rate between the two currencies for the trading cycle under review is: N$14.3518 per US$1. In contrast, the average exchange rate for April 2019 as a full month was: N$14.1400 per US$1. Therefore, the latest figure of N$14.3518 per US$1 indicates that the Namibian Dollar has depreciated against the United States Dollar. In other words it has become expensive or it costs a bit more to import fuel to Namibia,” the statement said.

At the end of April the price for petrol was increased by 70 cents per litre while 50 ppm diesel increased by 30 cents per litre.

As from next Wednesday fuel pump prices in Walvis Bay will be N$13.05 per litre for 95 Octane Unleaded Petrol while 50ppm Diesel will be adjusted upward to N$13.63 per litre. Fuel pump prices countrywide will be adjusted accordingly.

The decision indicates that the Ministry will not pass on the full under-recoveries to the consumers at the pumps. This means that the remaining portions of the under-recoveries will be paid to the oil companies from the coffers of the National Energy Fund on behalf of consumers, the Minister added.


 

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