Fuel price relief ‘more generous’ than expected
Petrol becomes cheaper tomorrow for the first time since September 2017, while the lower diesel price will be the first relief since July last year.
Despite the N$1/l-drop in the petrol price, petrol still remains 11.2% more expensive than the beginning of 2018, Klaus Schade, research associate at the Economic Association of Namibia (EAN), said. Diesel will become 40c/l cheaper, but its price remains 20.2% higher than the beginning of the year.
The drop in fuel prices is the result of cheaper oil worldwide in November, as well as the appreciation of the Namibia dollar against the greenback.
“This resulted in substantial over-recoveries (fuel prices at pump stations were higher than the cost of fuel) of 140.196 Namibia cents per litre for petrol 95 Octane, 60.465 Namibia cents per litre for diesel 500ppm and 59.589 Namibia cents per litre for diesel 50ppm,” Schade said.
It is the first time in seven months that the National Energy Fund (NEF) accumulated over-recoveries, he said. “Part of the over-recovery was passed on to the motorists, while the ministry uses part of the over-recovery to recover the NEF subsidy over the past months.”
According to Schade, the drop in fuel prices is more generous than the previous under-recoveries would have suggested.
Despite the N$1/l-drop in the petrol price, petrol still remains 11.2% more expensive than the beginning of 2018, Klaus Schade, research associate at the Economic Association of Namibia (EAN), said. Diesel will become 40c/l cheaper, but its price remains 20.2% higher than the beginning of the year.
The drop in fuel prices is the result of cheaper oil worldwide in November, as well as the appreciation of the Namibia dollar against the greenback.
“This resulted in substantial over-recoveries (fuel prices at pump stations were higher than the cost of fuel) of 140.196 Namibia cents per litre for petrol 95 Octane, 60.465 Namibia cents per litre for diesel 500ppm and 59.589 Namibia cents per litre for diesel 50ppm,” Schade said.
It is the first time in seven months that the National Energy Fund (NEF) accumulated over-recoveries, he said. “Part of the over-recovery was passed on to the motorists, while the ministry uses part of the over-recovery to recover the NEF subsidy over the past months.”
According to Schade, the drop in fuel prices is more generous than the previous under-recoveries would have suggested.
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