No fuel price relief for Namibians
Huge cuts expected in SA
The petrol price in Namibia has been increased three times so far this year, the price of diesel has been lowered three times.
Although the petrol price in Namibia will remain unchanged in November, Namibians wil still have to fork out N$4.60 or 25% more for a litre of fuel than in the beginning of the year.
The ministry of mines and energy on Friday said fuel prices will stay the same, which means that petrol will still cost N$22.88 per litre at Walvis Bay in November. In January, the price was N$18.28 per litre.
Compared to the beginning of this year, the diesel price – which will also remain unchanged at N$23.15 (50ppm) and N$23.35 (10ppm) per litre – is between N$2.50 and N$2.70 or 12.1% and 13.1% higher.
The petrol price in Namibia has been increased three times so far this year, while it remain unchanged seven times. There has been only one decrease in the price.
On the other hand, the price of diesel has been lowered three times, left unchanged six times and increased on two occasions.
Compared to November last year, petrol is nearly 14% more expensive, while diesel is between 3.1% and 3.9% cheaper.
In November 2021, petrol cost a mere N$14.95 per litre at Walvis Bay, while diesel sold for N$14.88 per litre.
Recovery
Oil prices fell “significantly” this month due to a decrease in fuel demand, the ministry said. The supply of diesel, which serves as a proxy of demand, dropped to around eight million barrels per day (bpd), its lowest point since the beginning of the year.
According to the ministry’s calculations, the average price of unleaded petrol was about 13.5% per barrel lower this month. The average price of diesel 50ppm was about 5.2% per barrel cheaper than September, while diesel 10ppm was down around 5.3%.
However, Namibian dollar weaken about 0.57% against the US dollar from 1 to 23 September – N$19.10 against N$18.99. This increased the foreign exchange burden to import fuel to Namibia, the ministry said.
As a result, the ministry experienced an over-recovery of N$1.48 per litre on petrol and under-recoveries of 33c and 23c per litre on diesel 50 ppm and diesel 10 ppm, respectively.
The National Energy Fund (NEF) will absorb the diesel under-recoveries through the Fuel Equalisation Fund, the ministry said.
“The ministry intended to maintain fuel prices which align to fluctuations in the market, with the primary goal of safeguarding the nation’s fuel supply,” chief spokesperson Eshioshange Ten Hasheela said.
Levies
When the ministry last month hiked the petrol price by N$1.90 per litre and that of diesel by N$2.40 a litre, independent economist Josef Sheehama said consumers and businesses were likely to feel the impact on transportation costs and overall living expenses.
“The government should closely monitor the situation to mitigate the effects of these price adjustments on the population,” Sheehama said.
He continued: “The government can cancel or reduce some fuel levies such Namcor and the Road Fund Administration as fuel drives the prosperity of the economy for any nation and should therefore be readily available and at affordable prices.
“Furthermore, it is important to note that the fuel levy funds are not necessarily ring-fenced for roads and transport. The money goes into Namcor pot, to be used and allocated to the country’s affairs. These levies can be cancelled or reduced to ease the situation.”
South Africa
A significant decline in petrol and diesel prices in South Africa is expected for November, according to unaudited data from the Central Energy Fund, Fin24 has reported.
The data suggests that the price of unleaded petrol 95 will decrease by R1.97 a litre, and R1.92 for unleaded 93 diesel is expected to decrease by around 78c cents a litre on Wednesday, 1 November.
"These significant decreases will come at a very critical time for South Africans who have had to dig deeper into their pockets to fill up their vehicles and food trolleys with the previous cycles of fuel increases," the Automobile Association said in a statement.
Petrol (95 unleaded) now retails for R25.68 a litre in Gauteng, from R21.40 at the start of 2023. The wholesale price of diesel in Gauteng is now R25.01 a litre, from R19.31 as recently as June this year. – Additional reporting by Fin24
The ministry of mines and energy on Friday said fuel prices will stay the same, which means that petrol will still cost N$22.88 per litre at Walvis Bay in November. In January, the price was N$18.28 per litre.
Compared to the beginning of this year, the diesel price – which will also remain unchanged at N$23.15 (50ppm) and N$23.35 (10ppm) per litre – is between N$2.50 and N$2.70 or 12.1% and 13.1% higher.
The petrol price in Namibia has been increased three times so far this year, while it remain unchanged seven times. There has been only one decrease in the price.
On the other hand, the price of diesel has been lowered three times, left unchanged six times and increased on two occasions.
Compared to November last year, petrol is nearly 14% more expensive, while diesel is between 3.1% and 3.9% cheaper.
In November 2021, petrol cost a mere N$14.95 per litre at Walvis Bay, while diesel sold for N$14.88 per litre.
Recovery
Oil prices fell “significantly” this month due to a decrease in fuel demand, the ministry said. The supply of diesel, which serves as a proxy of demand, dropped to around eight million barrels per day (bpd), its lowest point since the beginning of the year.
According to the ministry’s calculations, the average price of unleaded petrol was about 13.5% per barrel lower this month. The average price of diesel 50ppm was about 5.2% per barrel cheaper than September, while diesel 10ppm was down around 5.3%.
However, Namibian dollar weaken about 0.57% against the US dollar from 1 to 23 September – N$19.10 against N$18.99. This increased the foreign exchange burden to import fuel to Namibia, the ministry said.
As a result, the ministry experienced an over-recovery of N$1.48 per litre on petrol and under-recoveries of 33c and 23c per litre on diesel 50 ppm and diesel 10 ppm, respectively.
The National Energy Fund (NEF) will absorb the diesel under-recoveries through the Fuel Equalisation Fund, the ministry said.
“The ministry intended to maintain fuel prices which align to fluctuations in the market, with the primary goal of safeguarding the nation’s fuel supply,” chief spokesperson Eshioshange Ten Hasheela said.
Levies
When the ministry last month hiked the petrol price by N$1.90 per litre and that of diesel by N$2.40 a litre, independent economist Josef Sheehama said consumers and businesses were likely to feel the impact on transportation costs and overall living expenses.
“The government should closely monitor the situation to mitigate the effects of these price adjustments on the population,” Sheehama said.
He continued: “The government can cancel or reduce some fuel levies such Namcor and the Road Fund Administration as fuel drives the prosperity of the economy for any nation and should therefore be readily available and at affordable prices.
“Furthermore, it is important to note that the fuel levy funds are not necessarily ring-fenced for roads and transport. The money goes into Namcor pot, to be used and allocated to the country’s affairs. These levies can be cancelled or reduced to ease the situation.”
South Africa
A significant decline in petrol and diesel prices in South Africa is expected for November, according to unaudited data from the Central Energy Fund, Fin24 has reported.
The data suggests that the price of unleaded petrol 95 will decrease by R1.97 a litre, and R1.92 for unleaded 93 diesel is expected to decrease by around 78c cents a litre on Wednesday, 1 November.
"These significant decreases will come at a very critical time for South Africans who have had to dig deeper into their pockets to fill up their vehicles and food trolleys with the previous cycles of fuel increases," the Automobile Association said in a statement.
Petrol (95 unleaded) now retails for R25.68 a litre in Gauteng, from R21.40 at the start of 2023. The wholesale price of diesel in Gauteng is now R25.01 a litre, from R19.31 as recently as June this year. – Additional reporting by Fin24
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