Consumers receive small respite from price hikes

Niël Terblanché

Namibians will be spared another sharp increase in consumer goods because the price of fuel in Namibia will remain unchanged for the month of July.

The Ministry of Mines and Energy in a statement announced That the pump prices for both diesel and petrol will remain the same as in June.

The price of petrol in Walvis Bay will remain at N$19.78 per litre while the price of 50 ppm diesel will remain at N$19.05 per litre, and that of 10 ppm diesel will remain at N$19.25 per litre. Fuel prices across the rest of the country will also remain unchanged.

According to the energy ministry’s statement, it recorded an under-recovery on petrol and over-recoveries on both the diesel products, that is an under-recovery of 46 cents per litre on petrol and over-recoveries of 4 cents per litre on 50 ppm diesel and that of 1 cent per litre on 10 ppm diesel.

“The prices of oil and natural gas spiked during the last week of June 2023 as the markets reacted to the recent political developments in the Russian Federation, which is the world’s second-largest exporter of oil,” the statement reads.

According to the energy ministry, markets were largely focused on whether the unexpected events – an alleged coup attempt by the Wagner Group – in Moscow could disrupt global commodity supplies.

“The current political developments in Russia may contribute to further escalation in oil prices, which may influence global inflation coupled with the recent decision by OPEC to cut oil supply,” the statement said.

Along with the turmoil in Russia, Saudi Arabia, has recently announced that it would cut oil output in July 2023 from ten million barrels per day to nine million barrels per day and may extend cuts further if needed.

According to the statement, the exchange rate favoured Namibia after the national currency appreciated from N$19.0305 to N$18.7278 against the United States Dollar in the review period.

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