Fuel prices remain unchanged for JuneBy: LUQMAN CLOETE
THE Minister of Mines and Energy, Isak Katali, has announced that fuel prices will remain unchanged during this month.
As a result pump prices at Walvis Bay will stay at N$8,92 for leaded-replacement petrol, N$8,99 for unleaded petrol and N$ 9,40 for diesel.
Pump prices at various inland destinations countrywide will also remain steady.
Katali said prices of all grades of petrol will remain steady due to the decrease in international crude oil prices.
“The international crude oil prices have retreated from the highest record of all time since the beginning of the year to the 1st quarter of May 2011, to the lowest possible level of this difficult time in the global oil market,” said Katali.
“Never before in May had oil prices plummeted so deeply, dipping below US$110 a barrel. This decreasing trend of oil prices is weighed down by the combined effect of a broadly stronger U.S dollar against the Euro currency,” he added.
During the fuel price review, the average Namibian dollar to US dollar exchange rate strengthen with an average of US$6,48 at the end of May, also playing a role.
Saying its good news to see fuel prices plummeting again, Katali noted this would not only boost consumers’ discretionary spending power and perhaps bolster confidence, but it may also cool short-term demand.
Commenting on global political developments contributing to international crude hikes, Katali said: “It seems likely that the stalemate in Libya will be solved anytime soon and the return of Libyan crude production will help push oil prices even lower. As we all know, political upheaval in the Middle-East and North Africa has added about US$20 to the prices of crude oil since they started”.