Petrol up by 32c a litre
Fuel prices increased at midnight last night - by 32 cents a litre for 95-octane unleaded petrol and 25 cents a litre for all grades of diesel.
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 dollar over the period reviewed. Despite the exchange rate stability, fuel prices were affected heavily by OPEC's production cuts.
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 were 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.
The mines and energy ministry also announced that the Strategic Oil Storage Facility levy will increase by 10 cents a litre and the dealer margin levy by 4 cents a litre.
STAFF REPORTER
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 dollar over the period reviewed. Despite the exchange rate stability, fuel prices were affected heavily by OPEC's production cuts.
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 were 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.
The mines and energy ministry also announced that the Strategic Oil Storage Facility levy will increase by 10 cents a litre and the dealer margin levy by 4 cents a litre.
STAFF REPORTER
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