Import price stability for refined hydrocarbons since the oil price per barrel came down by very low margins and low over-recoveries recorded on all the products are too low to warrant any fuel price adjustments for the month of December.
According to Mines and Energy Minister, Obeth Kandjoze, over-recoveries for 95 octane unleaded petrol stood at 20.609 cents per litre (c/l), diesel 500ppm at 13.186 c/l and diesel 50ppm at 16.115 c/l.
In a statement released yesterday, Kandjoze noted that that the average freight rate assessment (AFRA) applicable to Namibia dropped by 5.23 percent as measured against the AFRA value of the preceding period. An AFRA decrease normally has a positive effect on the recoveries on the regulated prices of fuel products and a downward effect on the general fuel pump prices and vice versa.
Kandjoze also noted that the Namibia dollar weakened further against the US dollar. The average exchange rate stands at N$14.0187 per US$ compared to N$13.5220 per US$ for the preceding period. This represents a N$ depreciation of 3.54 percent relative to the US$. Oil trading is conducted with the US$ around international markets from which Namibian companies import refined hydrocarbons.
“Unleaded petrol 95 traded at an average freight on board (FOB) price of US$57.914 per barrel or N$811.879 per barrel as compared to US$61.193 per barrel or N$827.452 per barrel for the preceding period. This represents a decrease of 5.36 percent in the barrel price for ULP 95,” stated Kandjoze.
Furthermore, diesel 500 ppm traded at an average FOB price of US$ 56.964 per barrel or N$798.561 per barrel as compared to US$59.174 or N$800.151 per barrel for the preceding period. This represents a decrease of 3.73 percent in the per barrel price for diesel 500 ppm.