Niël Terblanché
Namibians received welcome news on Friday when the Ministry of Mines and Energy announced that fuel prices will remain unchanged for December, offering relief to consumers during the festive season.
This is the third consecutive month of stable fuel pricing, providing much-needed consistency in the face of global economic uncertainties.
In a statement released on Friday, the ministry confirmed that petrol prices at Walvis Bay will remain at N$20.25 per litre, while diesel 50ppm and 10ppm will stay at N$19.72 and N$19.82 per litre, respectively.
The announcement of stable fuel prices is aimed at mitigating the impact of volatile global fuel markets on Namibian consumers.
According to the ministry, international market dynamics have influenced divergent trends in petrol and diesel pricing.
“The price of petrol decreased due to reduced demand, particularly in China, where consumption has been declining for months,” the statement reads.
At the same time, diesel prices saw slight increases, driven by tightened supplies in major oil-producing nations.
According to the ministry, sanctions on Russian refined products have exacerbated the relative scarcity of diesel, contributing to these price dynamics.
Over the past month, petrol recorded an over-recovery of 26.75 cents per litre, and diesel variants experienced under-recoveries of 43.8 cents for 50ppm and 35.15 cents for 10ppm.
The ministry also cited the depreciation of the Namibia dollar against the United States dollar as a key factor.
“As oil is traded in US dollars on international markets, the Namibia dollar traded at an average of about N$18 per US dollar, reflecting a 1.8% depreciation since October 2024,” the statement said.
November’s average international prices further illustrated these trends.
Petrol prices dropped to US$83.97 per barrel, which is a 2.8% decrease from October, while diesel prices rose to US$89.00 per barrel for 50ppm and US$89.13 for 10ppm, reflecting increases of 2.4% and 2.3%, respectively.
The ministry said the government’s focus is on economic stability.
“Taking into account these developments and the need to shield the consumer from volatilities, petrol and diesel prices will remain unchanged,” the statement said.
As Namibians prepare for the holiday season, the ministry remains optimistic about future improvements in global markets. The decision to maintain fuel prices underscores the government’s efforts to balance international challenges with the needs of local consumers.
