Sigh of relief for motorists

The Ministry of Mines and Energy has decided to decrease fuel prices by N$1 effective Wednesday.

A statement issued on Saturday says both petrol and diesel (50ppm and 10ppm) will decrease by 100 cents per litre.

“Petrol prices and that of both diesel grades will decrease by 100 cents per litre for the month of October,” the statement reads.

In Walvis Bay, the price of petrol will be N$20.25 per litre, diesel 50ppm will be N$19.72 per litre, and diesel 10ppm will be N$19.82 per litre.

However, the ministry said the price reduction will vary from location to location.

“Fuel prices will vary from location to location, taking into account the cost of delivery of fuel implied by the introduction of the weighted fuel transportation rates,” says the statement.

The ministry recorded over-recoveries of 131.9 cents per litre on petrol, over-recoveries of 123.17 cents per litre on diesel 50ppm, and over-recoveries of 131.05 cents per litre on diesel 10ppm

According to the ministry, calculations for September show that the average price of petrol 95 is $82.849 per barrel, an 8.49% drop compared to August.

The price of diesel 50ppm has decreased to $82.689 per barrel, while diesel 10ppm went down by $82.878 per barrel when compared to August.

The ministry announced that road user charges for the Road Fund Administration will increase effective 2 October, replacing the current rail rates.

“The weighted fuel transportation rates for transporting fuel will replace both the current rail rates that are applicable for fuel transportation between Walvis Bay and the inland fuel pricing depots,” says the statement.

The rates will increase by 25 cents per litre, from 198 cents per litre to 223 cents per litre.

“On average, the weighted fuel transportation rates are about 21.9% higher than the current rail rates, entailing a general increase in local fuel transportation costs,” reads the statement.