Fuel prices to remain unchanged in October

Windhoek-Local fuel prices for October will remain unchanged to remain below the N$11 per litre level, mainly because the National Energy Fund (NEF), which is mandated to equalise these prices with income generated from the NEF Equalisation Levy, will absorb all under-recoveries recorded on both petrol and diesel in September.

Over N$70 million is expected to be paid to fuel importers as a result of not increasing the fuel prices. As we may know, the oil price is the cornerstone of the global economy and the fuel price is not just a cost to motorists at the pumps but also a cost factor in numerous other items, from the food on our tables to flight tickets, said Mines and Energy Minister Obeth Kandjoze in a statement on Friday.

Kandjoze noted that with emerging economies and the Eurozone recording some level of growth, the demand for energy was given a boost in the month of September. This, he said, was against a global supply put under pressure by the damage in the US shale output and the recent OPEC production cut agreement in Vienna.

As a result, global crude oil prices somewhat picked up, hovering above US$60 throughout the month of September. The exchange rate between the Namibia dollar against the US dollar did not help the situation. It is still high, above N$13.05, on average, Kandjoze explained.

Source: New Era Newspaper Namibia