Motorists and consumers nationwide will benefit from a reduction in fuel prices starting in April. The government has announced price cuts for petrol and diesel, effective Wednesday, 2 April.
Petrol prices will drop by 50 cents per litre, while both 50ppm and 10ppm diesel prices will fall by 80 cents per litre.
The Ministry of Mines and Energy explained that these lower prices result from over-recoveries recorded in March. The fuel pricing model showed over-recoveries of 58.77 cents per litre for petrol, 82.88 cents for diesel 50ppm, and 91.07 cents for diesel 10ppm.
This price reduction follows a global dip in oil prices, with Brent crude falling about 7.2% to US$70 per barrel. Increased oil production from non-OPEC countries such as the United States, Brazil, and Guyana has led to oversupply and reduced prices.
Additionally, the ministry noted that peace talks between Russia and Ukraine have improved market sentiment.
However, the ministry warned that recent announcements of protective trade tariffs by the United States have raised concerns about global economic stability, trade tensions, and lower demand expectations.
On the domestic front, the Namibian Dollar appreciated by 1.18% against the United States Dollar in March, averaging N$18.26 per USD. This made fuel imports more affordable.
There was also a minor adjustment to the Namport handling and wharfage tariff, which rose from 4.40 cents per litre to 4.60 cents per litre. This annual change has been factored into the new prices.
In Walvis Bay, the new pump prices will be N$20.67 per litre for petrol, N$20.62 for diesel 50ppm, and N$20.72 for diesel 10ppm. Prices in other areas of the country will vary based on the distance from Walvis Bay.
The Ministry of Mines and Energy confirmed it will continue to monitor both global and local developments to guide future pricing decisions.
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