September petrol prices bow down
On Wednesday, petrol prices were reduced by N$0.30 at the pump while diesel prices remained unchanged.
The year to year comparison shows a 2.83% increase from September 2013 in petrol prices and a 5% and 5.4% increase for diesel 500pm and 50pm respectively.
In the same year petrol remained unchanged in the last quarter while diesel experienced an increase in October 2013 of 3.8%. Current retail pump prices are set at N$11.99 per litre for 95 Octane Unleaded Petrol and N$12.42 and N$12.52 per litre for Diesel 500ppm and Diesel 50ppm respectively. The price of crude oil plunged through August, the largest single-month drop since April, due to Libyan oil poised to return on the market.
The Ministry of Mines and Energy said that oil prices shot up in June to a 10-month high over concerns of violence in Iraq disturbing supplies from OPEC’s second largest exporter. Prices drifted lower in the beginnings of August as Iraqi exports were not threatened. The statement said that with more certainty about Iraqi supplies, a large increase in Libyan crude is expected to soon hit the market.
Libyan exports have been slowed for nearly a year because of labour strife and other unrest, but recent agreements between the government and local militias may allow exports to surge in the coming weeks.
“U.S crude production also continues to rise, adding even more oil to global supplies. Filtered through the local market, the aforementioned events brought about substantial over-recoveries to trigger adjustments of fuel prices at the pumps,” the statement read.
The Ministry of Mines and Energy’s N$4billion oil storage facility in Walvis Bay funding through the National Energy Fund will increase by N$0.10 to fund the project. Currently, this will result in a N$0.25 per litre increase. The NEF levy will reach a total N$0.40 per litre in the future.