Energy ministry lowers diesel price, petrol left unchanged
The Mines and Energy Ministry announced for the month of March 2020, the price for 95 Octane Unleaded Petrol will remain unchanged at N$13.05 per litre, while the price for Diesel 50 PPM will decrease by 30 c/1 to N$13.33, effective 4 March.
Mines and energy minister Tom Alweendo said the eight successive month unchanged fuel pump prices was necessitated to aid the limping economy get back on its feet by sparing motorists and other fuel consumers additional economic burdens in the form of fuel price hikes.
Alweendo explained that oil prices fell sharply in February on mounting worries about economic damage from the coronavirus that has spread from China to over 20 countries.
“This virus saw refined oil prices falling from an average of US$70 and US$75 per barrel in January for petrol and diesel, respectively, to an average of US$65 and US$67 per barrel in February, 2020. Speculations are that prices might come below an average of US$50 per barrel in the near future,” Alweendo said.
During the month of February, the exchange rate between the Namibia Dollar against the US Dollar has depreciated and, as result, offset the benefits of a decline in oil prices, although partially only. It depreciated from an average of N$14.40 in January to a monthly average of N$14.80 in February, 2020. Filtered through the local market, petrol emerged with minimal over-recoveries while diesel recorded significantly high over-recoveries.
