The cost of petrol and the prices of both variants of diesel (diesel 50ppm and diesel 10ppm) will decrease by 100 cents per litre from Wednesday, according to the latest monthly fuel price adjustment announced by the Ministry of Mines and Energy.
In Walvis Bay, the price of petrol will be N$20.25 per litre, diesel 50ppm will be N$19.72 per litre, and diesel 10ppm will be N$19.82 per litre.
“The Ministry’s recent calculations show that in September, the average price of petrol 95 is US$82.849 per barrel, an 8.49% drop compared to August. The price of diesel 50ppm is US$82.689 per barrel, a 9.16% drop in relative terms, and diesel 10ppm is US$82.878 per barrel, a 9.17% drop compared to August,” the ministry said.
The government department also announced the introduction of new road fuel transportation rates, effective from 2 October 2024, replacing the current rail rates that are applicable.
“The Ministry resolved to introduce weighted fuel transportation rates to replace the current rail rates that are applicable for fuel transportation between Walvis Bay and the inland fuel pricing depots. These new rates will serve as the fuel transportation rates by road, thus achieving greater parity and fairness. On average, the weighted fuel transportation rates are about 21.9% higher than the current rail rates, entailing a general increase in local fuel transportation costs.”
This comes as a report titled Bridging the Gap in Energy Infrastructure, commissioned by Puma Energy, revealed that railage rates between Walvis Bay and Windhoek are priced at N$22 per cubic metre (m³), compared to N$24 per m³ by truck.
Fuel transporters often use railage rates as a benchmark for truck rates, given that rail rates set the base for price recovery in the structure.
The report also found that while rail transport offers potential cost savings, operational shortcomings are leading to higher expenses, forcing many to opt for the more expensive road transport.
