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Diesel price reduced

Diesel price reduced

The Mines and Energy Ministry this week announced that the price of diesel will reduce by N$0.40 while the price of petrol will remain unchanged effective midnight of 7 October.

This means that the new new price for diesel will be N$11.58 and petrol will stay at N$11.65. Reflecting on the developments in the oil industry during the past month, the spokesperson of the ministry Andreas Simon, said September saw a decline in the international price of the refined petroleum products in comparison to the previous months.

The average international price for refined petrol was US$48.38 per barrel compared in August to US$46.99 in September 2020; while that of refined diesel was US$48.45 per barrel in August compared to US$42.79 in September.

During the same period, the exchange rate between the Namibia Dollar against the US Dollar has strengthened. It appreciated, on average, from N$17.22 in August to N$16.62 in September. Moreover, freight has slightly increased during the period under review.

“The cost of shipping product was 91% above flat freight rates in September compared to 74% in August,” Simon said.

These factors contributed to under recoveries and over recoveries during the month. An under recovery of 3.854 cents per litre was recorded on petrol while 50ppm diesel recorded an over recovery of 62.600 cents per litre, showing an improvement from September were only under recoveries were recorded.


 

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Donald Matthys

Donald Matthys has been part of the media fraternity since 2015. He has been working at the Namibia Economist for the past three years mainly covering business, tourism and agriculture. Donald occasionally refers to himself as a theatre maker and has staged two theatre plays so far. Follow him on twitter at @zuleitmatthys