The Ministry of Mines and Energy announced that fuel prices will remain unchanged with N$11.38 per litre for diesel while the petrol price will remain N$11.35 per litre for January 2021.
The ministry said this is despite under-recoveries were observed in the previous month. Under-recoveries of -25.746 c/l was recorded on petrol while 50ppm diesel recorded an under-recovery of 48.685 c/l. These under-recoveries will be financed from the National Energy Fund.
Spokesperson for the ministry, Andreas Simon explained during the month of December 2020, the international price of refined petroleum products increased in comparison to the previous months.
"The average international price for refined petrol was US$51.82 per barrel in December compared to US$44.15 in November, 2020; while that of refined diesel was US$53.53 per barrel in December compared to US$44.79 in November," Simon said.
He added that during the same period, the exchange rate between the Namibia Dollar against the US Dollar strengthened as it appreciated, on average, from N$15.50 in November to N$14.92 in December. This appreciation helped keep under-recoveries at an acceptable level.