Guest Contributor | Nov 5, 2019 | 0
Fuel prices remain unchanged in September
The Ministry of Mines and Energy has announced that fuel prices will remain at 13, 05 for 95 Octane Unleaded Petrol while 50 ppm diesel will remain at N$13, 63 per litre.
The Executive Director in the ministry, Simeon Negumbo said a reduction in fuel prices is currently not possible as per the new fuel tax levy which was supposed to be imposed on the pump prices by 25c/l from 90c/l.
The Ministry of Finance has increased the gazetted fuel tax with 25 cents per litre from 65c/l to 90c/l on 2 August 2019. The Ministry of Finance has autonomy over tax rate adjustments, hence the Ministry of Mines and Energy is currently compelled to increase the fuel tax by 25c/l effective from 1st of September 2019.
According to the mines ministry, over-recoveries normally trigger fuel price reduction but due to the fuel tax increase a reduction is currently not possible and due to the over-recovery the National Energy fund will absorb the increase in litre prices for in the interim and fuel prices will stay put the same for the month of September.