Fuel retailers scramble to avoid losses

11 May 2020 | Energy

JANA-MARI SMITH

WINDHOEK



A brief stock shortage of petrol and diesel last Wednesday at some fuel stations was due to savings measures by retailers.

Following several queries from the public who arrived at fuel stations that had run out of petrol and diesel, ministry of mines and energy spokesperson Andreas Simon said some fuel retailers had placed their orders at the last minute for new stock.

The retailers had intended to finish their old stock before the fuel price decreased on Wednesday, he explained.

In some cases, this led to fuel stations being unable to service customers for a few hours.



Avoiding losses

“They argue that if they had continued with the old stock after the effective date of the new price, they would be selling their fuel at a cheaper price.

“So, it was basically a saving measure on their part,” Simon said.

He added that the brief gap in availability was quickly rectified, and the new stock is being sold at the lower prices, according to the adjustment for the month of May.

Both Hamutele Lazarus Nafidi, spokesperson for Vivo Energy Namibia, and Engen Namibia confirmed this.



Fuel price relief

The drop in fuel prices was announced by mines and energy minister Tom Alweendo, who said the price for both 95 Octane Unleaded Petrol and diesel would drop by N$1 per litre.

“Like all other sectors of the economy, our local oil industry, both bulk importers and fuel retailers, were negatively affected by the national lockdown to curb the spread of Covid-19.

“Local demand for fuel has dropped significantly,” he said.

Alweendo added that bulk fuel importers are only selling a “fraction of what they usually sell”, while some retailers' sales are “close to nothing, depending on their location”.



Downside

The minister said the decrease in fuel prices was necessitated by the fallout of the coronavirus pandemic, which has brought the global transport industry to near standstill, causing the demand for oil around the world to drop significantly against a huge supply.

The imbalance between demand and supply led to the collapse of global oil prices and was also accompanied by a sharp depreciation in the exchange rate between the Namibian dollar against the US dollar, which could potentially offset the benefits of a decline in oil prices, Alweendo said.

Similar News

 

Fuel prices expected to remain meek

1 month - 04 June 2020 | Energy

Phillepus Uusiku- The association between the Organisation of Petroleum Exporting Countries (OPEC) and independent oil producers such as Russia reached an agreement last month to...

Zambia denies expropriation

1 month - 04 June 2020 | Energy

Zambia's government said on Wednesday it had no intention of taking over Copperbelt Energy Corp (CEC), after the company accused the government of expropriating its...

Angola's oil output to drop

1 month - 02 June 2020 | Energy

Oil production in Angola will fall to 1.3 million barrels per day due to the cancellation or postponement of investments planned for this year, Banco...

NamPower to electrify 1 000 households

1 month - 29 May 2020 | Energy

ELLANIE SMIT WINDHOEK NamPower is set to electrify 1 000 households in Windhoek's peri-urban areas at a cost of N$15.5 million. This was announced yesterday...

Covid-19 delays oil exploration in Kavango

1 month - 22 May 2020 | Energy

KENYA KAMBOWE KAWE Reconnaissance Energy Africa (ReconAfrica), which has an interest in exploring oil and gas in the Kavango basin,...

Alweendo optimistic about renewable energy prospects

1 month - 19 May 2020 | Energy

NAMPAKHORIXASThe ministry of mines and energy is optimistic about the future of the renewable energy sector and the growing presence of international oil companies in...

Fuel retailers scramble to avoid losses

1 month - 11 May 2020 | Energy

JANA-MARI SMITH WINDHOEK A brief stock shortage of petrol and diesel last Wednesday at some fuel stations was due to savings measures...

Fuel price drop to bring some relief

2 months ago - 07 May 2020 | Energy

OGONE TLHAGE WINDHOEK With fuel prices dropping by a further N$1 a litre, economists differed on whether this will indeed have a...

17 hours of darkness for northern towns

2 months ago - 17 April 2020 | Energy

ILENI NANDJATOOKATOPEA broken crossarm on a power line left parts of the north without electricity for several hours this week.The 66kV line between Okatope and...

Dundee Precious Metals Tsumeb reaffirms support to the Tsumeb...

2 months ago - 09 April 2020 | Energy

Dundee Precious Metals Tsumeb reaffirmed its support to the Tsumeb community by improving the preparedness levels of the Tsumeb District hospital should the COVID-19 virus...

Latest News

Khorixas town council to prioritise

10 hours ago | Economics

The Khorixas town council plans to spend its development budget of N$13 860 000 for the 2020/21 financial year on priority areas such as servicing...

Food security crucial in a...

10 hours ago | Economics

The world has entered an era of “every country for itself”, leaving Namibia with no choice but to pursue policies that are aimed towards food...

'Fitty' offers N$16m bail guarantee

10 hours ago | Crime

JEMIMA BEUKESWINDHOEKFishrot accused Tamson 'Fitty' Hatuikulipi – whom the State argues was an integral part of the fishing quota bribery scandal – has offered N$16...

Massive cold front on the...

10 hours ago | Weather

ELLANIE SMIT WINDHOEK A massive cold front is developing in the South Atlantic and is expected to reach Namibia early on Friday. It brings with...

The reality of downsizing survivor...

10 hours ago | Business

Lisa MatomolaThe increasing news and media reports on companies who are downsizing and/or cutting jobs across Namibia are a startling reflection on the faltering Namibian...

Prinsloo leads as new MD...

10 hours ago | Business

Phillepus UusikuThe role of managing director (MD) of Namibia Dairies, a subsidiary of the Ohlthaver & List (O&L) Group, was officially taken over by Leonie...

Namibian police never learn

10 hours ago | Opinion

Newspaper column inches have been exhausted with stories of victims of violence who were turned away by police and later got murdered.In 2018, five members...

Still no yellow brick road...

10 hours ago | Business

Jo-Maré Duddy – Paladin Energy, the majority shareholder in Langer Heinrich, at the end of June said it needed US$81 million or around N$1.4 billion...

FNB temporarily closes Klein Windhoek...

10 hours ago | Business

FNB Namibia took a necessary health and safety measure action in temporarily shutting down its Klein Windhoek branch for a week beginning Monday, 6 July...

Load More