Fuel prices likely to stay

A CREDIBLE source in the oil industry has dismissed rumours that petrol prices are to go up sometime soon.

Speaking on condition of anonymity, the well-placed source told The Namibian yesterday that despite international crude oil prices going up, evidence from the ground was that fuel prices were likely to remain unchanged this month. “Look, prices have not been adjusted for some time now and they’re likely to stay the same this month.We have an over-recovery in lead-replacement petrol (LRP) of 56 cents per litre, while there is an over-recovery of 55 cents per litre of unleaded petrol (95),” said the source.He added that there was an under-recovery for diesel at 28 cents per litre, but this would not necessarily lead to a fuel price hike this month.He noted that while international crude oil prices have been shooting up to almost US$98 per barrel last week, at the same time there has been a favourable exchange rate which has seen the Rand/Namibian dollar substantially gaining on the weaker US dollar – which is the currency used for purchasing oil.An announcement on the fuel situation is expected to be made next week by the Minister of Mines and Energy, Erkki Nghimtina.Last month, the Ministry of Mines and Energy decided to keep fuel prices for October unchanged due to the same over-recovery on petrol.Currently the pump prices at Walvis Bay are N$6,91 for a litre of unleaded petrol 95, N$6,89 for a litre of LRP and N$6,70 for a litre of diesel.South Africa, from where Namibia imports most of its fuel, hiked its petrol prices last week.However, the source dismissed this as not an influencing factor.”The way I see it the Ministry (of Mines and Energy) will continue monitoring the situation for this month.””Look, prices have not been adjusted for some time now and they’re likely to stay the same this month.We have an over-recovery in lead-replacement petrol (LRP) of 56 cents per litre, while there is an over-recovery of 55 cents per litre of unleaded petrol (95),” said the source.He added that there was an under-recovery for diesel at 28 cents per litre, but this would not necessarily lead to a fuel price hike this month.He noted that while international crude oil prices have been shooting up to almost US$98 per barrel last week, at the same time there has been a favourable exchange rate which has seen the Rand/Namibian dollar substantially gaining on the weaker US dollar – which is the currency used for purchasing oil.An announcement on the fuel situation is expected to be made next week by the Minister of Mines and Energy, Erkki Nghimtina.Last month, the Ministry of Mines and Energy decided to keep fuel prices for October unchanged due to the same over-recovery on petrol.Currently the pump prices at Walvis Bay are N$6,91 for a litre of unleaded petrol 95, N$6,89 for a litre of LRP and N$6,70 for a litre of diesel.South Africa, from where Namibia imports most of its fuel, hiked its petrol prices last week.However, the source dismissed this as not an influencing factor.”The way I see it the Ministry (of Mines and Energy) will continue monitoring the situation for this month.”