Niël Terblanché
In a bid to offer some relief to Namibian consumers, the Ministry of Mines and Energy announced that fuel prices will remain unchanged for November 2024, despite rising international oil prices.
The price of petrol will stay at N$20.25 per litre, while diesel 50ppm and 10ppm will remain at N$19.72 and N$19.82 per litre, respectively, in Walvis Bay.
In a statement released on Friday, the ministry attributes the global uptick in oil prices to ongoing geopolitical tensions in the Middle East and the Organisation of the Petroleum Exporting Countries (OPEC) decision to extend production cuts by 2.2 million barrels per day through November.
Although these factors have exerted upward pressure on oil prices, the appreciation of the Namibian Dollar against the United States Dollar has helped mitigate the impact on Namibian fuel prices.
In October, the local currency traded at an average of N$17.57 per US Dollar, which was a slight increase from September.
The strengthening of the Namibian Dollar partially offset higher oil prices, with average prices for petrol and diesel rising by 4.73% and 5.33%, respectively, from the previous month.
While Namibia’s pricing model registered under-recoveries of 6.29 cents per litre for petrol and 18.54 and 10.74 cents per litre for diesel variants, the government has opted to absorb these costs through the National Energy Fund.
In addition, the ministry extended a temporary 20 cents per litre relief margin for oil importers until December 2024, providing short-term support as Namibia transitions to its new Bulk Petroleum Import Coordination System, set to launch soon.
In the statement the energy ministry expressed optimism for a resolution to the situation in the Middle East which it hopes will stabilise global markets, benefitting net fuel importers like Namibia.
