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Fuel prices to decrease in December

Fuel prices to decrease in December

The Ministry of Mines and Energy announced a decrease in the price of petrol by 30 cents per litre and that of diesel by 20 cents per litre for the month of December, bringing the new fuel prices to N$11.35 per litre for petrol and N$ 11.38 per litre for diesel, effective midnight of 2 December.

The ministry said the decision is made on the back of over-recoveries seen due to some developments, including the weakening of the American dollar against the Namibian dollar and minor to moderate fluctuations in the prices of petrol and diesel across the international product market.

“These developments, when factored into the basic fuel price calculations by the Ministry, indicated that it was cheaper for the importers to bring fuel to Namibia over the course of the month of November 2020. To that end, the current review has an over-recovery of about 46 cents on petrol and about 27 cents on diesel,” spokesperson of the ministry, Andreas Simon said.

Simon said the ministry has also resolved to adjust the industry margin on all products for the fuel importers by 5 cents per litre from 103 cents per litre to 108 cents per litre.

“This adjustment is necessitated after the annual assessment of assets and incomes value levels for the fuel wholesale importers revealed a need for an adjustment,” he said.

The ministry further urged the fuel wholesalers to reinforce the efficient use of their assets to ensure fuel price sustainability in the long-term.


 

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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


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