Fuel Prices left unchanged for January

The Ministry of Mines and Energy has announced it’s the outcome of its monthly fuel price review for January 2021.

In the statement, the spokesperson of the Ministry of Mines and Energy, Andreas Simon said fuel pump prices in Walvis Bay (port of entry) will remain at N$11.35 per litre for petrol and N$11.38 per litre for diesel.
Simon said because the economy is still limping in the Covid-19 climate, the intention of the government is not to place additional burden on consumers. Simon highlighted the fact that the ploughing season is starting and that diesel is one of the petroleum products used on a large scale by the agricultural sector. “It is for that reason that the fuel review committee of the ministry has decided to keep the fuel pump prices for January 2021 unchanged and to finance the recorded under-recoveries from the National Energy Fund”, Simon said.
Giving a summary on the status of the global oil market, Simon stated that a host of factors influences fuel pump prices, however, during the month of December, the international price of refined oil and the exchange rate between the Nami-bian dollar and the US dollar had a bearing on fuel prices. Simon said, “during the same period, the exchange rate between the Namibian dollar and the US dollar strengthened. It appreciated on average from N$ 15.50 in November 2020 to N$14.92 in December 2020.” This appreciation helped keep under-recoveries at an acceptable level. The month of December recorded under-recoveries on both petrol and diesel. An under-recovery of -25.746 c/l was recorded on petrol while 50 ppm diesel recorded an under-recovery of -48.685 c/l. Petrol cost US $ 51.82 a barrel in December 2020, compared to US $ 44.15 in November 2020. Diesel’s price per barrel was US $ 53.53 compared to US $ 44.79 per barrel in November 2020”, Simon added.

Traditionally, under-recoveries call for equivalent increases in local fuel pump prices.
However, the National Energy Fund, which absorbs under-recoveries on behalf of consumers from time to time, is in a stable financial position and will thus absorb the under-recoveries recorded during this month.