Fuel prices stay put this month
The Minister of Mines and Energy, Tom Alweendo announced that fuel prices will remain unchanged throughout July at N$13.05 for 95 Octane Unleaded Petrol per litre and N$13.63 Diesel 50ppm per litre.
Alweendo said that June was favourable for net importers of oil, like Namibia, as oil prices fell slightly below US$75 from the beginning of June due to slow global demand for the product and an increase in oil inventories in the United States.
Alweendo noted that the weakening of the Namibia dollar to the US dollar from N$14.31 in May to N$14.6 in June was not that severe, thus not escalating the cost of importing fuel to Namibian shores into under-recoveries. Therefore, the month of June saw over-recoveries.
“Naturally, over-recoveries trigger a fuel reduction in the local market. However, due to potential risks of sharp oil price increases in the days and weeks ahead due to political tensions between USA and Iran, the National Energy Fund would absorb the over-recoveries in order to strengthen its financial capacity to subsidize possible under-recoveries in the months ahead,” Alweendo said.