The Ministry of Mines and Energy has announced that fuel pump prices will remain unchanged, with 95 Octane unleaded petrol staying put at N$13.05 per litre and Diesel 50 ppm at N$ 13.63 per litre.
Energy Minister Tom Alweendo said that the National Energy Fund, which absorbs under-recoveries on behalf of consumers from time to time, is in a stable financial position and will thus absorb the under-recoveries recorded during September.
"The Ministry will thus keep fuel pump prices for the month of October unchanged," Alweendo said.
Alweendo further said that the highlight of September in the global oil market was the attack on Saudi Arabian oil facilities, adding that initial fears that oil prices will drastically rise were quelled when the state oil producer, Saudi Aramco, announced that the facilities will be restored back to full capacity as soon as possible.
He added that the market volatilities contributed to measured increases in oil prices, with refined oil trading at an average of US$72 and US$77 per barrel of petrol and diesel, respectively, in September, in comparison to a final an average of US$69 and US$74 per barrel of petrol and diesel in August.
Alweendo stated that all these factors resulted in moderate under-recoveries recorded on fuel pump prices. He further noted that the 2017 Petroleum Activities Return report indicates that oil companies are failing to generate sufficient returns on their investments in the petroleum sector.
"Thus, an adjustment in their margins to a level that would encourage sustainability and further investment is required. The ministry has therefore decided to increase the industry margin by 3 c/l from 93 c/l to 96 c/l on all the prices regulated fuel products. The effective date for this adjustment is 2 October 2019," Alweendo said.