The price of petrol will decrease by 30 cents per litre and diesel will go down by 20 cents a litre for December 2020, bringing much-needed relief for the upcoming holiday season. These adjustments mean the new fuel prices in Walvis Bay will be N$11.35 per litre for petrol and N$11.38 per litre for diesel, with prices across the rest of the country being adjusted accordingly as of 2 December 2020.
According to a mines and energy ministerial statement, a weakening of the US dollar against the local currency, coupled with minor to moderate fluctuations in international fuel prices, were major factors in the decision to reduce fuel prices.
"These developments, when factored into the basic fuel price calculations by the ministry, indicated that it was cheaper for the importers to bring fuel to Namibia over the course of the month of November 2020. To that end, the current review has an over recovery of about 46 cents on petrol and about 27 cents on diesel," read the statement from ministry spokesperson Andreas Simon.
The statement continued that the ministry has resolved to adjust the industry margin on all products for the fuel importers by five cents per litre from 103 cents per litre to 108 cents per litre. Simon explained that the adjustment was necessitated after the annual assessment of assets and incomes value levels for the fuel wholesale importers revealed a need for it. The adjustment is also effective on 2 December 2020 and the ministry urged fuel wholesalers to reinforce the efficient use of their assets to ensure fuel price sustainability in the long-term.