No change in fuel price
28 October 2020 | Economics
This means diesel in Walvis Bay will still cost N$11.58c/l, while the petrol price will remain N$11.65c/l at the coast.
According to the ministry, an under-recovery of 1.27c per litre on petrol was recorded this month, compared to an under-recovery of 9.264c/l in September. Diesel pump prices were reduced by 40c/l in October, while petrol prices remained the same.
Consequently, the previous reduction in diesel pump prices caused an over-recovery from 60.697c/l in September to 11.464c/l this month.
An under-recovery means pump prices were lower than the import price, while an over-recovery indicates the price was higher.
Normally, when an under-recovery occurs, it is passed on to the consumer or it is financed from the National Energy Fund (NEF) to subsidise the consumer.
“The ministry will continue to soften the burden on consumers and at the same time, keep the fuel pump prices stable in order to ensure the sustainability of the NEF,” spokesperson Andreas Simon said in a statement.