A Review of the Nigerian Energy Industry

Namibia: Positive developments surrounding fuel prices

Fuel-dispencer08 December 2013, Windhoek – The Ministry of Mines and Energy (MME) recently confirmed that fuel prices will remain unchanged for the month of December, meaning pump prices in Walvis Bay are N$11.66 for 95 octane unleaded petrol, N$12.27 for diesel 500ppm and N12.33 for diesel 50ppm.

According to Mines and Energy Minister, Isak Katali, the decision to keep the fuel price unchanged emanates mainly from the preliminary agreement reached between the five permanent members of the United Nations Security Council (the United States, United Kingdom, China, the Russian Federation and France) and Iran. The agreement reached during November has brought along positive developments to non-oil producing countries around the world. “Although the fundamental picture still indicates the presence of oil supply concerns, the price action seems to be suggesting that the market is stabilizing, making it ripe for potential short-covering rally. The diminished threat to global supplies is likely to make crude cheaper in the short-term. And if Iranian oil returns to international markets, the additional supply is likely to make crude less expensive over the long term,” explained Katali in a statement.

The minister noted that the period under review is not much different from the previous period whereby the international oil market was showing favourable prices. Said Katali: “Therefore, the BFP import parity recorded currently gives no room for major adjustments. Thus, the ministry has decided to keep the local fuel pump prices unchanged.”

This announcement by the MME marks the fourth time in a row that the price of petrol has not changed since September 2013 and the second time in a row for the price of diesel since November 2013. “We are optimistic that there might be decreases in pump prices during the first quarter of 2014 if international oil prices follow the current trend and if our currency gets more weight against the US dollar. This will indeed be a fair move to the agricultural sector that uses fuel in their daily activities and all consumers in general, particularly during the upcoming festive season when we all want to visit our families and friends around the country,” noted Katali.

– New Era

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