Namibia’s Ministry of Mines and Energy announced on Friday that petrol and diesel pump prices will go down next week.The decrease was due to favourable conditions in the global oil prices, said Mines and Energy Minister Obeth Kandjoze said.
He said the prices of both crude oil and refined oil have defied recent forecasts that were based on the OPEC agreement to cut oil production a few months ago.
He said expectations were that by June, the prices would be hovering above US$65 per barrel.
“For the past four months, the prices have not reached that threshold with June recording US$60 and US$57 for a barrel of refined diesel and petrol, respectively. These averages are not far from the preceding month’s averages of US$63 per barrel for refined diesel and US$60 for petrol,” Kandjoze said.
He said the exchange rate between the Namibia dollar against the US dollar has also been favourable during the period under review.
The average exchange rate for June 2017 was N$12.88 to US$1 compared to May’s average of N$13.22.
The cost for shipping oil has also decreased in June as assessed by the London Tankers Broker, which recorded US$145.70 per metric tonne in June compared to US$151.30 in May.
“When all the aforementioned cost elements were filtered through the local market, substantial over-recoveries were recorded. For the past few months consumers have not gotten a relief at the pumps because the results of the Basic Fuel Price model were not favourable. It is only fair that they get some relief this time around when the conditions are favourable,” Kandjoze said.