WINDHOEK, Sept. 9 — Namibia will raise retail prices of petrol (gasoline) and diesel Wednesday due to the significant under-recoveries as well as the depreciation of the Namibia dollar against the U.S. dollar in August. The prices of gasoline will increase by 120 cents per liter and those of diesel by 170 cents per liter, the Ministry of Mines and Energy said Monday in a statement. Gasoline will now be pegged at 20.98 Namibia dollars (about 1.41 U.S. dollars), while the price of diesel 50 parts per million (ppm) will be 20.75 Namibia dollars and that of diesel 10 ppm, 20.95 Namibia dollars per liter. “The ministry recorded significant under-recoveries on petrol and both the diesel products, that is an under-recovery of 240 cents per liter on petrol and under-recoveries of 354 cents and 348 cents per liter on diesel 50 ppm and diesel, respectively,” the ministry noted, adding that the there is a pressing need to ensure that the fuel prices are best reflective of the market dynamics to ensure the efficient security of supply. Meanwhile, the ministry said the National Energy Fund will absorb the entirety of the under-recoveries on behalf of fuel consumers, through the fuel equalization levy. The ministry further highlighted that Namibia is a price taker in the international oil market, and actions or decisions that emanate from the supply forces such as (OPEC+) have a significant impact on the local fuel prices.
Xinhua
