The sharp upward curve in the cost of consumer goods in Namibia will flatten off with diesel prices that will be significantly cheaper as of next week Wednesday.
The Ministry of Mines and Energy has announced that the price for petrol will remain unchanged while the pump price for 50 ppm diesel will decrease by 80 cents and 10 ppm diesel by 60 cents.
The new fuel prices in Namibia will be implemented at midnight next Wednesday.
As a result of the downward adjustment the price of 50 ppm diesel will be N$19.00 and 10 ppm diesel will be N$19.25 in Walvis Bay. The prices will, however, increase as the distance from Namibia’s main port increases.
According to a statement issued by the energy Ministry, the average price for 95 octanes unleaded petrol was US$92.118 per barrel in May 2023, compared to US$102.374 per barrel at the end of April 2023, indicating a significant decrease of approximately US$10 over the review period.
The Ministry’s calculations also showed that the average price for 50 ppm diesel in May 2023 was US$85.765 per barrel, compared to US$96.514 per barrel at the end of April 2023, representing a decrease of approximately US$10 per barrel over the review period.
The Ministry stated that although the Namibian Dollar depreciated considerably against the United States Dollar during May it still recorded over-recoveries on petrol and diesel products because of decreased crude oil prices.
Road user charges for road maintenance and the construction of new roads will increase by 30 cents per litre, from 148 cents per litre to 178 cents per litre. The charges were increased at the request of the Ministry of Finance and Public Enterprises.
The energy Ministry expressed optimism that the market conditions would remain favourable for a net fuel importer like Namibia it would lead to even lower pump prices for consumers.