Fuel price hike tonight
The pump price for fuel will increase at midnight tonight by 32 cents a litre for 95 unleaded petrol and 25 cents a litre for all grades of diesel.
The production cuts by the Organisation of Petroleum Exporting Countries (OPEC) members and Russia to balance the oversupplied crude oil market is the main reason for the current rally. However, even after achieving close to their targeted 1.8 million barrels a day of production cuts, the huge stockpiles have not reduced. On the contrary, US crude stocks have risen 39 million barrels this year, to 518 million, since OPEC started cutting production in January.
The average exchange rate remained stable at about N$13.2656 per US$ over the period reviewed. Despite the exchange rate, stability in the financial markets the prices of fuel products were affected heavily by OPEC’s announcement under the period reviewed.
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 recorded are sufficient 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 recorded. Under-recoveries have run into 38.8 cents a litre for unleaded petrol, just under 32 cents a litre for diesel 500ppm and 32.3 cents a litre for diesel 50ppm.
STAFF REPORTER
The production cuts by the Organisation of Petroleum Exporting Countries (OPEC) members and Russia to balance the oversupplied crude oil market is the main reason for the current rally. However, even after achieving close to their targeted 1.8 million barrels a day of production cuts, the huge stockpiles have not reduced. On the contrary, US crude stocks have risen 39 million barrels this year, to 518 million, since OPEC started cutting production in January.
The average exchange rate remained stable at about N$13.2656 per US$ over the period reviewed. Despite the exchange rate, stability in the financial markets the prices of fuel products were affected heavily by OPEC’s announcement under the period reviewed.
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 recorded are sufficient 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 recorded. Under-recoveries have run into 38.8 cents a litre for unleaded petrol, just under 32 cents a litre for diesel 500ppm and 32.3 cents a litre for diesel 50ppm.
STAFF REPORTER
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