October fuel prices remain stable
The Ministry has granted a 10 cent per litre increase to benefit pump stations in increasing their profit margin on petrol to ensure that the country has a constant supply of fuel at all times.
This means that 1.23 cents per litre increase in the service differential on all petroleum products, Petrol and Diesel will be effective this week.
Walvis Bay pump prices for October for 95 Octane Unleaded Petrol will be N$11.99 per litre, Diesel 500ppm N$12.42 per litre. Diesel 50ppm N$12.52 per litre.
“Oil companies have in the past spent a lot on actual depot related costs (storage and handling) and distribution costs from the depot to the end user at service stations, without being compensated due to inflationary pressure,” the ministry said.
The statement from the ministry said crude oil prices will continue to decline in the last quarter of the year.
This is said to be due to high supply on international markets continuing to weigh down on prices.
“Oil prices fell after Libya restarted production at its largest oil field, bringing more barrels to a market already brimming with crude,” the statement added.
According to the statement the latest Petroleum Activities Return report has indicates that oil companies are not getting enough returns on their investments in the petroleum sector and there is a need to adjust their margins just enough to encourage further investment for the future.