Fuel prices unchanged for September

THE Minister of Mines and Energy, Erkki Nghimtina, has announced that fuel prices will remain unchanged during September.

This means pump prices at Walvis Bay will stay at N$6,44 per litre of unleaded petrol, N$6,42 per litre of lead-replacement petrol and N$6,50 per litre of diesel. The announcement will come as a disappointment to consumers who expected a price cut in line with South Africa, but others are relieved that there won’t be a sixth price hike this year.As one small business operator in Windhoek said: “It’s not anything special, as we are already paying too much for everything, so it doesn’t mean much to me …but I am happy that at least the prices are not going up this month.”Expectations of lower fuel prices were fuelled by dropping crude-oil prices on the international market and news of an over-recovery on fuel sales in the local market.Crude-oil prices have retreated to below US$69 a barrel, compared to US$79 a barrel in August.During August, the local market has recorded an over-recovery of around 38 cents per litre of petrol and of 12 cents per litre of diesel.This means that consumers are paying more at the pump than what it costs to import the fuel.But the Ministry says it decided to keep fuel prices at the same level to make up for under-recovery during the previous three months.”The aforementioned factors compelled the Ministry of Mines and Energy to keep fuel pump prices unchanged for this month in order to subsidise the persisting backlog of the cumulative slate balances for the months of May, June and July 2006,” said Minister Nghimtina.He was quick to add that with the volatile nature of international oil prices, the situation could change again soon, for better or for worse.”(B)ased on the factors, it is apparent that crude oil prices will remain volatile and any little imbalance can result in large swings in crude prices,” Nghimtina said.The announcement will come as a disappointment to consumers who expected a price cut in line with South Africa, but others are relieved that there won’t be a sixth price hike this year.As one small business operator in Windhoek said: “It’s not anything special, as we are already paying too much for everything, so it doesn’t mean much to me …but I am happy that at least the prices are not going up this month.”Expectations of lower fuel prices were fuelled by dropping crude-oil prices on the international market and news of an over-recovery on fuel sales in the local market.Crude-oil prices have retreated to below US$69 a barrel, compared to US$79 a barrel in August.During August, the local market has recorded an over-recovery of around 38 cents per litre of petrol and of 12 cents per litre of diesel.This means that consumers are paying more at the pump than what it costs to import the fuel.But the Ministry says it decided to keep fuel prices at the same level to make up for under-recovery during the previous three months.”The aforementioned factors compelled the Ministry of Mines and Energy to keep fuel pump prices unchanged for this month in order to subsidise the persisting backlog of the cumulative slate balances for the months of May, June and July 2006,” said Minister Nghimtina.He was quick to add that with the volatile nature of international oil prices, the situation could change again soon, for better or for worse.”(B)ased on the factors, it is apparent that crude oil prices will remain volatile and any little imbalance can result in large swings in crude prices,” Nghimtina said.