Good news for motorists
The minister of mines and energy Tom Alweendo announced that fuel pump prices will decrease.
The price of 95 Octane Unleaded Petrol will decrease by N$1.70 per litre and that of Diesel 50ppm by N$1.20 per litre.
The new fuel pump prices in Walvis Bay (port of entry) will thus become N$11.35 per litre for 95 Octane Unleaded Petrol and N$12.13 per litre for Diesel 50ppm.
Fuel pump prices countrywide will be adjusted accordingly.
The minister said that the ongoing Covid-19 outbreak greatly impacted the international oil market and the global demand for oil products has weakened in the process.
In addition, major oil producers like Saudi Arabia and Russia cannot seem to agree among themselves on production cuts, leaving the oil market flooded and over-supplied with petroleum products.
The outcome is a possible price war as each competitor strives to maintain market share.
The aforementioned events resulted in major price drops over the period under review, stretching from 26 February 2020 to 25 March 2020.
In terms of the international product market, the prices of refined oil recorded significant reductions.
One barrel of petrol traded at an average of around U$41 in comparison to an average of U$64 at the end of February 2020, while a single barrel of diesel traded at around U$47 in comparison to an average of U$65 at the end of February 2020.
This dramatic drop in petrol price is caused by the impact of Covid-19 on the global economy and the continuous high supply of oil products during a period of low demand.