The Ministry of Mines and Energy this week announced that as of midnight 2 September, the price of 50ppm diesel pump will increase with 15 cents and while 95-octane petrol will increase with 30 cents.

Andreas Simon, spokesperson of the ministry said the decision to increase the fuel pump price by less than the recorded under-recovery was made to continue to soften the burden on the consumers while at the same time ensuring the sustainability of the National Energy Fund.

Due to the changes in the international price and the exchange rate as explained above, during the month of August there was an under-recovery of 26.303 cents per litre for the 50ppm diesel and 61.940 cents per litre for the 95-octane petrol. It will be recalled that for the month of July 2020, a much larger under-recovery of 164.936 cents per litre for diesel and 204.206 cents per litre for petrol was recorded.

“Since April 2020, we are keenly aware of the COVID-19 impact on the economy in deciding how to deal with under-recoveries. It is for that reason that even though the July 2020 review recorded an under-recovery of 164.936 and 204.206 cents per litre for diesel and petrol, respectively, only 70 and 100 cents per litre, respectively, was passed onto the consumers. The rest of the under-recovery was financed from the National Energy Fund,” Simon said.

The new fuel pump prices in Walvis Bay (port of entry) and across the country will become N$11.65 per litre for petrol and N$11.98 per litre for diesel.

 

Source: Namibia Economist

Share