Petrol price likely up, diesel down

GOVERNMENT under-recovered 19,8 cents per litre of unleaded petrol and 13,2 cents per litre of lead-replacement petrol (LRP) during May, which means consumers should probably gear for an increase in the petrol price next week.

However, it might not all be bad news.The latest slate figures also show an over-recovery of 16,3 cents per litre for diesel in May. An over-recovery means that the basic fuel price, based on the daily product price and exchange rate, is less than the basic fuel price used in the calculation of the monthly retail fuel price. An over-recovery of 16,3 cents per litre of diesel is therefore likely to result in a decrease in the diesel price for June.Simonis Storm Securities (SSS) Research Director Emile van Zyl said the local slate is in line with that of South Africa, where the petrol price went up by 17 cents per litre last Wednesday. Diesel there became 12 cents per litre cheaper at the same time.Van Zyl said the same trend is likely to be followed here: the petrol price will go up, while that of diesel will probably drop.Mines and Energy Minister Erkki Nghimtina usually picks a Wednesday in the middle of the month for new pump prices to become effective.Fuel prices weren’t adjusted last month. Unleaded petrol currently costs N$6,44 per litre at Walvis Bay, while LRP is priced at N$6,40 per litre. A litre of diesel at Walvis Bay costs N$6,63.jo-mare@namibian.com.na