Fuel prices unchanged

Sharlien Tjambari

Fuel prices in Namibia are set to remain unchanged for February, following a review in January of fuel prices and international market trends. The Ministry of Mines and Energy reviews fuel prices on a monthly basis and said in a statement this week various market trends and the continued strength of the South African Rand against the US Dollar warranted the decision to leave fuel prices unchanged for the month of February.

In Walvis Bay pump prices will remain at N$12,05 per litre of 95 Octane Unleaded Petrol; N$13,08 per litre of 500ppm Diesel and N$13,13 per litre of 50ppm Diesel.
Countrywide too, fuel prices also remain unchanged.
In a statement the Ministry explained on Wednesday refined oil, diesel and petrol traded on a stable pricing. The Rand-US Dollar exchange rate also re-mained import-favoured.
As diesel is critical in the running of any economy, the statement also expressed the Ministry of Mines and Energy’s commitment to keep prices stable, as low as possible and in doing so facilitate better planning for the various industries consuming diesel.
There is also an over-recovery situation on fuel imports to the tune of 62,430 cents per litre on petrol and 63,181 cents per litre and 63,822 cents per litre for 500ppm and 50ppm diesel respectively.
These over-recovery amounts were pegged on 25 January, according to the statement.
Other market indicators also confirmed the international fuel market to remain favourable for Namibia the foreseeable future. The Rand yesterday stood at its strongest in a very long time, trading at around N$13,30 against the US Dollar. That is import-favoured for commodities like fuel. Crude oil on the West Texas Intermediary remained in midway between US$50 and US$55 per barrel and Brent remained around US$60 to US$62 and little signs that the world markets are hungry for crude.
Negative political events in Venezuela also had very little influence on pushing up crude prices, despite the United States’ ban on oil imports from this OPEC-member.
Venezuela saw its crude production out-put dwindling in recent years on the back of aged and ineffective crude oil production infrastructure and only when production levels are restored would Venezuela again be-come a crude oil con-tender with a global influence.
Growing shale oil production in the United States and large inventories of stock-pile processed petroleum products are also two major factors positively influencing figures favourably for Namibia as a net fuel importer.