Petrol price relief for Namibian consumers

FUEL prices will once again go down just after midnight tonight, making this the second petrol price cut of the year.

The first cut of the year was in January, while there was no price change in February. The good news announced by the Ministry of Mines and Energy at the weekend will see unleaded and lead-replacement petrol going down by 14 cents a litre, while diesel will be cut by six cents a litre.This will see Walvis Bay pump prices at N$5,68 per litre of unleaded petrol, N$5,66 for a litre of lead-replacement petrol (LRP) and N$5,90 for a litre of diesel.In Windhoek, a litre of unleaded petrol will now go for N$5,86 a litre, N$5,84 for LRP and N$6,09 a litre for diesel.Since December, Government has cited an over-recovery on the market for the reduction of fuel prices.”At present, the Ministry of Mines and Energy would like to pass the benefit of over-recoveries accrued during February 2007 in the local market on to the consumers to ease the burden imposed on them,” explained the Ministry’s Permanent Secretary, Joseph Iita.The over-recovery has been attributed to lower international crude oil prices and a favourable exchange rate of the local currency against the US dollar.These price cuts are a welcome relief for consumers after a nasty 2006, which was characterised by steep fuel price hikes which saw the prices of basic commodities also rising as a ripple effect.However, Iita warned that given the volatility of crude oil prices, caution would always be exercised when the authorities reviewed fuel prices.The good news announced by the Ministry of Mines and Energy at the weekend will see unleaded and lead-replacement petrol going down by 14 cents a litre, while diesel will be cut by six cents a litre.This will see Walvis Bay pump prices at N$5,68 per litre of unleaded petrol, N$5,66 for a litre of lead-replacement petrol (LRP) and N$5,90 for a litre of diesel.In Windhoek, a litre of unleaded petrol will now go for N$5,86 a litre, N$5,84 for LRP and N$6,09 a litre for diesel.Since December, Government has cited an over-recovery on the market for the reduction of fuel prices.”At present, the Ministry of Mines and Energy would like to pass the benefit of over-recoveries accrued during February 2007 in the local market on to the consumers to ease the burden imposed on them,” explained the Ministry’s Permanent Secretary, Joseph Iita.The over-recovery has been attributed to lower international crude oil prices and a favourable exchange rate of the local currency against the US dollar.These price cuts are a welcome relief for consumers after a nasty 2006, which was characterised by steep fuel price hikes which saw the prices of basic commodities also rising as a ripple effect.However, Iita warned that given the volatility of crude oil prices, caution would always be exercised when the authorities reviewed fuel prices.