Fuel hike in new year
Despite a favourable dollar exchange rate, fuel prices are going up in Namibia next week as global oil production cuts start taking effect.
STAFF REPORTER
Consumers can brace themselves for the first fuel-price hike of the new year next week Wednesday.
The Ministry of Mines and Energy has announced that fuel pump prices will increase by 20 cents per litre of 95-octane unleaded petrol (retail) and by 30 cents per litre for all grades of diesel (wholesale).
The Organisation of Petroleum Exporting Countries (Opec) announced last month at its 171st ordinary meeting in Vienna that it would reduce output by about 1.2 million barrels per day by January 2017.
It was the first output cut announced by the group in eight years.
Saudi Arabia will bear 40% of the cuts, with Iraq reducing output by nearly 20%. Nigeria and Libya were exempted from the cuts.
Opec also secured agreements from non-Opec members. Russia led the group of non-Opec producers by agreeing in principle to cut production by about 300 000 barrels per day.
The statement says most of these non-Opec cuts are symbolic, as many are in line with the natural production declines expected to be experienced by these countries.
The market response to the Opec cuts was swift. Global crude-oil prices quickly rose by 10% to above $50 per barrel.
The latest fuel price review indicates that the average Free On Board prices per barrel increased by about U$5 for unleaded petrol (ULP 95) and US$4 for both diesel grades.
Refined oil traded at an average of U$63.219 per barrel for ULP 95, U$60.906 and U$61.176 for diesel 500ppm and diesel 50ppm respectively.
The basic fuel price unit rate slate calculations for the past month recorded high under-recoveries on all the regulated petroleum products. The under-recoveries were enough to trigger an increase in local pump prices.
However, the National Energy Fund will meet Namibian fuel consumers halfway by absorbing a portion of the under-recoveries.
Furthermore the ministry says that the average exchange rate remained stable at about N$13.8 per U$ over the period reviewed.
Despite the exchange rate stability in the financial markets the prices of fuel products were affected heavily by Opec’s output cuts.
The new Walvis Bay pump prices will be N$10.68 per litre for ULP 95, N$10.58 per litre for diesel 500ppm and N$10.63 per litre for diesel 50ppm.
Consumers can brace themselves for the first fuel-price hike of the new year next week Wednesday.
The Ministry of Mines and Energy has announced that fuel pump prices will increase by 20 cents per litre of 95-octane unleaded petrol (retail) and by 30 cents per litre for all grades of diesel (wholesale).
The Organisation of Petroleum Exporting Countries (Opec) announced last month at its 171st ordinary meeting in Vienna that it would reduce output by about 1.2 million barrels per day by January 2017.
It was the first output cut announced by the group in eight years.
Saudi Arabia will bear 40% of the cuts, with Iraq reducing output by nearly 20%. Nigeria and Libya were exempted from the cuts.
Opec also secured agreements from non-Opec members. Russia led the group of non-Opec producers by agreeing in principle to cut production by about 300 000 barrels per day.
The statement says most of these non-Opec cuts are symbolic, as many are in line with the natural production declines expected to be experienced by these countries.
The market response to the Opec cuts was swift. Global crude-oil prices quickly rose by 10% to above $50 per barrel.
The latest fuel price review indicates that the average Free On Board prices per barrel increased by about U$5 for unleaded petrol (ULP 95) and US$4 for both diesel grades.
Refined oil traded at an average of U$63.219 per barrel for ULP 95, U$60.906 and U$61.176 for diesel 500ppm and diesel 50ppm respectively.
The basic fuel price unit rate slate calculations for the past month recorded high under-recoveries on all the regulated petroleum products. The under-recoveries were enough to trigger an increase in local pump prices.
However, the National Energy Fund will meet Namibian fuel consumers halfway by absorbing a portion of the under-recoveries.
Furthermore the ministry says that the average exchange rate remained stable at about N$13.8 per U$ over the period reviewed.
Despite the exchange rate stability in the financial markets the prices of fuel products were affected heavily by Opec’s output cuts.
The new Walvis Bay pump prices will be N$10.68 per litre for ULP 95, N$10.58 per litre for diesel 500ppm and N$10.63 per litre for diesel 50ppm.
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