Authorities have resolved to keep the fuel pump prices unchanged for August
The Ministry of Mines and Energy said petrol pump prices will remain at N$13.55 c/l and diesel prices will remain at N$13.58 c/l.
In July under-recoveries of 91.236 cents/litre was recorded on petrol while 50ppm diesel recorded an under-recovery of 66.896 cents/litre.
“For the Ministry to continue to soften the burden on the consumers and at the same time ensure the sustainability of National Energy Fund (NEF), the Ministry has decided to keep the fuel pump prices for August 2021, unchanged,” said Andreas Simon, spokesperson for Ministry of Mines and Energy.
NEF says it will absorb the full under-recoveries recorded between the two regulated products.
Simon said the fuel review took into consideration that the international price of refined products have been fluctuating significantly, stating that the average price of refined petrol increased from US$80.00 in June to US$85.00 in July 2021.
The development has been attributed to an increase in demand recorded in the first weeks of July in major markets.
“Oil prices look volatile as rising COVID-19 cases are posing a threat to oil demand recovery at a time when OPEC+ has announced to boost output with an extra 400 000 barrels per day from August through December,” said Simon, adding that forecasts indicate the demand is likely to overtake supply for the rest of the year.
Meanwhile authorities have also highlighted the local currency depreciated slightly against the US Dollar, from an average of N$13.93 in June to an average of N$14.40 in July 2021, as another factor for price increase.
By Glenn-Nora Tjipura