Petrol price cut on the cards

WITH international crude oil prices lingering at much lower levels than a month ago, local fuel prices are set to drop this month.

Cabinet is scheduled to meet today to discuss a recommendation by the Ministry of Mines and Energy to decrease fuel prices, The Namibian has learnt. A price cut would be a welcome relief for Namibians, who have so far been hammered by five petrol price hikes this year alone.The Ministry attributed all the increases to the then high and volatile world oil prices.Oil prices shot up to a record high of US$78 per barrel in August, after which Namibian consumers were slapped with a 50 cents per litre fuel price increase.However, the oil prices has since gone down dramatically, and was hovering around US$60 yesterday in spite of reports that North Korea had tested a nuclear bomb.”The agenda is to decrease fuel prices.I think Cabinet will give consideration to lowering the prices.There is a strong possibility that fuel will decrease,” a credible source within the industry revealed yesterday.Walvis Bay pump prices currently stand at N$6,44 per litre of unleaded petrol, N$6,42 per litre of lead-replacement petrol and N$6,50 for a litre of diesel.Last month, Namibian consumers felt a little relief when the Minister of Mines and Energy, Erkki Nghimtina, announced that fuel prices would not go up again.The reasons given for that decision were lower crude oil prices on the world market, and an over-recovery of around 38 cents per litre of petrol and 12 cents per litre of diesel on the local market.A decrease in fuel prices this time around would be in line with international trends.South Africa – which is Namibia’s major fuel supplier – recently slashed its prices twice within a month.On Wednesday, the price of petrol in South Africa went down by 50 cents per litre, while diesel was reduced by 34 cents.South Africans, who had suffered six fuel hikes this year, were relieved when the first price cut of the year was announced in early September.The outcome of today’s Cabinet meeting will be followed by an official announcement of fuel prices for the next month.A price cut would be a welcome relief for Namibians, who have so far been hammered by five petrol price hikes this year alone.The Ministry attributed all the increases to the then high and volatile world oil prices.Oil prices shot up to a record high of US$78 per barrel in August, after which Namibian consumers were slapped with a 50 cents per litre fuel price increase.However, the oil prices has since gone down dramatically, and was hovering around US$60 yesterday in spite of reports that North Korea had tested a nuclear bomb.”The agenda is to decrease fuel prices.I think Cabinet will give consideration to lowering the prices.There is a strong possibility that fuel will decrease,” a credible source within the industry revealed yesterday.Walvis Bay pump prices currently stand at N$6,44 per litre of unleaded petrol, N$6,42 per litre of lead-replacement petrol and N$6,50 for a litre of diesel.Last month, Namibian consumers felt a little relief when the Minister of Mines and Energy, Erkki Nghimtina, announced that fuel prices would not go up again.The reasons given for that decision were lower crude oil prices on the world market, and an over-recovery of around 38 cents per litre of petrol and 12 cents per litre of diesel on the local market.A decrease in fuel prices this time around would be in line with international trends.South Africa – which is Namibia’s major fuel supplier – recently slashed its prices twice within a month.On Wednesday, the price of petrol in South Africa went down by 50 cents per litre, while diesel was reduced by 34 cents.South Africans, who had suffered six fuel hikes this year, were relieved when the first price cut of the year was announced in early September.The outcome of today’s Cabinet meeting will be followed by an official announcement of fuel prices for the next month.