Motorists and businesses can now breathe a sigh of relief after the Ministry of Mines and Energy reduced the price of diesel for December by N$1.25 to N$22.85, while the price of petrol remains unchanged from 7 December 2022.
The price cut comes after the Ministry in November had announced a N$1.98 price increase on diesel to N$24.10 per litre, a development which made the country’s mining and the agriculture sectors, which heavily rely on the fuel to operate various machinery, warn consumers of production and operational cost increases.
“The latest calculations by the Ministry indicate that the average price for Unleaded Petrol 95 over the period 1-25 November is at US$105.863 per barrel compared to US$100.766 at the end of October 2022, a moderate increase of about US$5 over the period.
“The average price of Diesel 50ppm over the priod 1-25 November is at US$131.260 per barrel compared to US$142.054 per barrel at the end of October, 2022, a significant decrease of of about US$11 per barrel over the period,” the Ministry said.
“The exchange rate figures for the period 1-25 November, 2022 indicate that the NAD has appreciated against the USD at N$17.5082 per USD compared to N$18.1048 per USD at the end of October, 2022. This currency appreciation contributes to the fuel price over-recoveries and has an ultimate positive effect in terms of the pockets of local fuel consumer.”
According to the Chamber of Mines of Namibia, Namibia’s mining production targets for 2023 are under threat from the continued rise in fuel prices.
Namibia, according to data from the Ministry of Mines and Energy, consumes 90 million litres of fuel per month on average – 60 million litres of diesel and 30 million litres of petrol.
