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Local

Fuel Price Decreases Announced for July 2024

todayJuly 1, 2024 306

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The Ministry of Mines and Energy has completed its review of the fuel prices for July 2024, with significant changes announced following a recent decline in global oil prices.

Global Oil Price Trends

Oil prices recently dropped to a four-month low, influenced by the Organization of the Petroleum Exporting Countries and its allies (OPEC+) decision to maintain production levels steady until the end of 2025. This decision, announced during the OPEC+ meeting this month, combined with a decline in consumer confidence and ongoing market concerns, has led to a notable decrease in oil prices.

Price Changes and Calculations

The Ministry’s latest calculations show a decrease in the average prices of various fuels:

  • Unleaded Petrol 95: Averaged USD 94.73 per barrel in June 2024, down from USD 98.835 per barrel in May 2024, marking a decrease of USD 4.104 per barrel or 4.15%.
  • Diesel 50ppm: Averaged USD 94.480 per barrel in June 2024, down slightly from USD 94.529 per barrel in May 2024, a decrease of 0.05%.
  • Diesel 10ppm: Averaged USD 94.0865 per barrel in June 2024, down from USD 95.174 per barrel in May 2024, a decrease of 0.3%.

Additionally, the exchange rate between the Namibian Dollar (NAD) and the US Dollar (USD) showed a moderate depreciation of 0.1%, with the NAD standing at N$18.4378 per USD in June 2024, compared to N$18.4202 per USD in May 2024. This slight depreciation had a negligible impact on the overall drop in oil prices.

Fuel Price Adjustments

Taking into account the over-recovery observed in petrol (120.857 cents per litre) and diesel (96.398 cents per litre for 50ppm and 111.915 cents per litre for 10ppm), the Ministry has made the following decisions:

  • Industry Margin: Increase by 23 cents to 189 cents per litre to ensure fair returns on investments for oil companies.
  • Dealer’s Margin: Increase by 9 cents per litre to 192 cents per litre for service station operators.
  • Road Rates: Increase by 15% to facilitate fuel distribution across the country.

Price Reductions for Consumers

Recognizing the recent decline in global oil prices, the Ministry has decided to pass these benefits onto consumers:

  • Petrol Prices: Decrease by 80 cents per litre.
  • Diesel 50ppm Prices: Decrease by 60 cents per litre.
  • Diesel 10ppm Prices: Decrease by 70 cents per litre.

In Walvis Bay, the new prices will be N$22.20 per litre for petrol, N$21.57 per litre for diesel 50ppm, and N$21.67 per litre for diesel 10ppm. These changes will take effect at 00h01 on Wednesday, July 3, 2024, with fuel prices across the rest of the country adjusted accordingly.

Outlook

The Ministry remains optimistic about maintaining favorable market conditions, especially for net fuel-importing countries like Namibia. The adjustments aim to ensure efficient fuel supply while providing some relief to consumers who have previously borne the brunt of higher oil prices.

Written by: Staff Writer

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