Mines and Energy Minister, Tom Alweendo, on Friday announced the temporary reduction of the petrol price by N.dollar 1.20 and diesel by 30 cents for a period of three months, between May and July 2022.

Briefing the media here, Alweendo said the adjustments, effective from 05 May 2022, were a result of the Cabinet’s approval of the ministry’s recommendations to temporarily reduce levies imposed on petroleum products by 50 per cent.

He said the levies include the road user charges from N.dollars 1.48 to 70 cents; Fuel levy from 90 cents to 45 cents and the National Petroleum Corporation of Namibia (Namcor) from N.dollars 7.60 to N.dollars 3.80 cents, whilst the Motor Vehicle Fund (MVA) was reduced by 25 per cent from N.dollars 50.30 to N.dollars 37.73 per litre.

These reductions, Alweendo revealed, amount to about N.dollars 120.4 million per month in savings to the fuel consumer at the macroeconomic level, adding that the National Energy Fund will cover the entirety of the under-recoveries recorded in April on behalf of fuel consumers through the fuel equalization levy to an amount of N.dollars 51.5 million.

“The ministry will continue to keep a close eye on the developments in the global oil market and continue to make decisions that are in the best interest of Namibian fuel consumers,” he noted.

Alweendo further indicated that the ministry in April recorded an over-recovery on petrol by 31 cents per litre and under-recovery for diesel by 92 cents per litre, noting that is due to the Namibian dollar recording a slight appreciation against the USD at N.dollars 14.84 cents as compared to N.dollars 14.95 per USD at the end of March.

Source: The Namibian Press Agency