Stable rand to help fuel prices

03 January 2019 | Energy

Simonis Storm analyst Indileni Nanghonga believes that fuel prices could drop further if the rand strengthens against the US dollar.

This follows a reduction in fuel prices for the months of December and January.

Expressing her opinion on recent fuel price movements, Nanghonga said: “Brent Crude declined by 36.2% to US$52.8 per barrel as on 2 January 2019 from a peak of US$82.7/barrel while the fuel price in Namibia [has] decreased by 13.6% since December 2018.”

Looking ahead, a stronger rand could help fuel prices come down by another small margin, she added.

“We expect fuel prices to decrease by a potential N$0.50 per litre in February 2019 with [the] assumption that global oil prices and the rand remain stable around these levels,” said Nanghonga.

The ministry of mines this week announced that fuel prices would decrease by N$0.90 for petrol and by N$1 for all variants of diesel. This means that in Walvis Bay, a litre of diesel 500 ppm will cost N$13.08, a litre of diesel 50 ppm will cost N$13.13 and a litre of petrol will cost N$12.05.

According to the ministry, the reduction in fuel prices was driven by an oversupply of fuel on the global market.

“The global oil market has now slipped into ebb mode where global oil prices have fallen by as much as 30%. The projected global meltdown has seen demand for oil falling while oil inventories have built up since October 2018,” mines minister Tom Alweendo said. The lower cost of importing fuel meant that there were over-recoveries in the Namibian market.

On the global front, a Reuters poll forecasts that 2019 US light crude will average US$61.05 per barrel this year, compared to US$67.45 projected in the previous poll. The price averaged US$64.98 in 2018.

OGONE TLHAGE

Similar News

 

Power cut at education offices

4 hours ago | Energy

The Ohangwena education directorate's offices at Eenhana have been left without electricity, after Nored cut the power due to non-payment on Tuesday.According to sources, the...

Mega projects coming

4 weeks ago - 25 July 2019 | Energy

NamPower is planning multi-billion-dollar investments in power transmission and the generation of electricity over the next four years, which are outlined in its recently approved...

Judge leaves door open for Kalenga

1 month - 12 July 2019 | Energy

High Court Judge Thomas Masuku has left the door open for Konisa Eino Kalenga to bring a review application to challenge the designation and coronation...

Electricity price drops 2.5%

3 months ago - 03 May 2019 | Energy

The Electricity Control Board (ECB) yesterday announced a 2.5% decrease in the bulk tariff for electricity - the first price drop in 36 years. ...

NamPower granted permission to decrease tariffs

3 months ago - 02 May 2019 | Energy

The Electricity Control Board (ECB) today granted NamPower a 2.5% decrease in the bulk tariff for electricity, for the first time in 36 years. The...

Petrol up by 70c

3 months ago - 30 April 2019 | Energy

Namibian motorists will see a 70c increase in petrol and a 20c increase in 50ppm diesel as of midnight tonight. The mines ministry announced the...

Namcor to fly solo on fuel storage facility

4 months ago - 12 April 2019 | Energy

The National Petroleum Corporation of Namibia (Namcor) says it will have to manage the strategic fuel-storage facility on its own for now, as the tendering...

Eskom too big to fail

6 months ago - 07 February 2019 | Energy

Eskom was too big and too important for South Africa to be allowed to fail, President Cyril Ramaphosa said on Tuesday.The troubled South African state-owned...

Opoloyela yolusheno lwoonkondo dhetango mOkatope ya tameke

6 months ago - 04 February 2019 | Energy

Omahangano gatatu ngoka ga pewa ootendela kehangano lyoku andjakaneka olusheno moNamibia lyaNamPower, opo ga tulepo oosasiyona ndatu dhoolusheno lyoonkondo dhetango mOkatope moshitopolwa shaShikoto oga tameke...

Okatope solar plants get off the ground

6 months ago - 01 February 2019 | Energy

Three companies awarded tenders by NamPower to set up three solar power plants at Okatope in the Oshikoto Region have started construction.NamPower signed power purchase...

Latest News

N$600m down the drain

4 hours ago | Justice

Any hopes of Namibia recovering the over N$600 million lost in the Government Institutions Pension Fund (GIPF) scandal have been dashed. Prosecutor-General Martha Imalwa confirmed...

Infighting hinders progress

4 hours ago | Columns

Our traditional leaders, with all due respect, have been hogging the headlines for some time now, and mostly for the wrong reasons. Unnecessary infighting among...

Companies fail on health, safety

4 hours ago | Health

The majority of companies inspected by the labour ministry in the first quarter of this year were not in compliance with occupational health and safety...

Namibians dread worsening droughts

4 hours ago | Disasters

While Namibia is battling one of its worst droughts in history a mere 38% of Namibians say that droughts in the country have not become...

Olufuko launched tomorrow

4 hours ago | Cultural

The Olufuko Annual Cultural Festival has attracted 69 girls who have already registered with the organising committee to undergo initiation during this year's festival.The 2019...

Bolster fight against hepatitis E

4 hours ago | Health

The World Health Organisation (WHO) has again urged Namibia to boost its response to the protracted hepatitis E outbreak which has claimed the lives of...

NEPC financial woes due to...

4 hours ago | Government

Cash-strapped state-owned New Era Publications Corporation (NEPC)'s acting CEO Benjamin Jakobs has attributed the corporation's failure to account for N$33.5 million to employees' poor work...

Okapale komatukodhila taka lukilwa Ya...

4 hours ago | Transport

Otaku ka tulwa oshihongwathano shomukondjelimanguluko gwaNamibia, Herman Andimba Toivo Ya Toivo pokapale koondhila kaNdangwa.Shoka otashi ka ningwa nale nehangano lyoNamibia Airports Company (NAC) otali...

Pedalling buzz

4 hours ago | Sports

At least 100 cyclists are expected to take part in the first-ever Oshana Cycle Challenge, which will take place on Saturday. The first-of-its-kind challenge will...

Load More