Fuel prices remain unchanged in July

The Ministry of Mines and Energy (MME) has resolved to keep fuel prices unchanged for the month of July 2020.

The price of 95 octane petrol will remain at N.dollars 10,35 per litre while the price of diesel 50ppm remains at N.dollars 11,13 per litre.

The ministry’s spokesperson, Andreas Simon, in a statement availed to the media on Friday said since the crash in oil prices in April; the global oil market has begun to pick itself up as countries begin to open up their economies following the lockdowns in March owing to COVID-1.

As a result, Simon said the demand for oil started to surge including the prices of various petroleum products.

He explained that the exchange rate between the Namibian Dollar against the US Dollar has been relatively favourable during the period under review in which it appreciated from an average of N.dollars 18.15 in May 2020 to N.dollars 17.01 in June 2020.

Simon noted that the appreciation in the local currency was, however, not strong, enough to offset the corresponding increase in the international oil prices and diesel and significant under-recoveries were recorded.

However, under normal circumstances, Simon said under-recoveries warrant an increase of local fuel pump prices but the Government was mindful of the fact that the economy is still bleeding due to COVID-19 effects.

Simon said the National Energy Fund (NEF) will absorb all the under-recoveries recorded and the ministry will monitor the market in the months ahead to assess how best the prevailing pump prices can be brought on par with the market prices as the market forces currently dictate.

“Under normal circumstances, such under-recoveries would have warranted an increase in the pump prices. However, under the prevailing economic hardship conditions, the ministry has decided to keep the fuel pump prices unchanged for the month of July 2020,” said Simon.

He added that the situation was coupled with the fact; under-recoveries found the NEF to be in a healthy financial position.

Source: Namibia Press Agency