Fuel prices to remain unchanged this month
The Ministry of Mines and Energy has resolved to keep countrywide fuel pump prices unchanged for the month of June 2020.
The price of 95 octane petrol will remain at N$10,35 per litre while the price of diesel 50ppm remains at N$11,13 per litre.
The ministry’s spokesperson Andreas Simon said the decision was made taking into account the need to ensure the orderly importation of fuel products into the country.
The Organisation of Petroleum Exporting Countries (OPEC) and independent oil producers such as Russia, reached an agreement during April to cut oil production by close to 10 million barrels per day in May and June as a response to falling oil demand caused by the coronavirus pandemic.
These cuts are expected to aid the recovery of crude prices on the supply side of the crude oil business equation. Saudi Arabia, the biggest oil producer in OPEC, has further announced to cut production by one million barrels per day in June.
“On the demand side of the refined products business equation, increases are expected in the near term as more and more countries continue to ease their respective lockdown restrictions,” Simon said.
Simon said the under-recovery on petrol has found the National Energy Fund in a healthy financial position and will thus, be absorbed in its entirety on the behalf of local fuel consumers, whereas the over-recovery on diesel and under-recovery on petrol are both relatively low amounts.