Fuel prices remain unchanged this month
The price of petrol will remain unchanged at 13.55 c/l, while the price for diesel will remain at N$13.58 c/l for the month of August, the Ministry of Mines and Energy announced.
Spokesperson of the ministry, Andreas Simon, said the decision was made to continue to soften the burden on the consumers and at the same time ensure the sustainability of the National Energy Fund (NEF).
International prices of refined products have been fluctuating significantly during the period under review. The average price of refined petrol increased from US$80 in June to US$85 in July, whilst the average price of refined diesel increased slightly from US$78 in June to US$79 in July. This is due to an increase in demand recorded in the first weeks of July in major markets such as the Americas, Middle East and North Africa (MENA) as well as some parts in Europe.
“Looking forward, oil prices look volatile as rising Covid-19 cases are posing a threat to oil demand recovery at a time when OPEC+ has announced to boost output with an extra 400 000 barrels per day from August through December. Still, forecasts indicate that demand is likely to overtake supply for the rest of the year,” Simon said.
On the local front, the local currency depreciated slightly against the US Dollar, from an average of N$13.93 in June to an average of N$14.40 in July 2021. Owing to the aforementioned factors, during the month of July, under-recoveries were recorded: An under-recovery of 91.236 cents/litre was recorded on petrol while 50ppm diesel recorded an under-recovery of 66.896 cents/litre.
“The NEF will absorb the full under-recoveries recorded between the two regulated products,” Simon said.