The Ministry of Mines, Energy and Industry has announced a fuel price reduction, citing lower global oil prices and a stronger Namibia dollar as key factors.
The good news for Namibian road users is effective from Wednesday.
Petrol will decrease by 50 cents per litre, while both diesel variants will drop by 80 cents per litre, the ministry said in a statement.
With the adjustments, the new prices at Walvis Bay will be N$20.67 per litre for petrol, N$20.62 per litre for diesel 50ppm, and N$20.72 per litre for diesel 10ppm.
Fuel prices in other regions will be adjusted accordingly.
The ministry attributed the price reduction to relevant domestic policy developments and a global oil price decline, which fell by approximately 7.2% to US$70 per barrel in March.
This was largely due to increased oil supply from the United States (US), Brazil and Guyana, which led to market oversupply with price-reducing effects.
“However, economic uncertainty and geopolitical factors continue to weigh on the global oil price outlook.
Notably, the protective trade tariff announcements by the US have given rise to heightened concerns about global economic stability, trade tensions and reduced demand expectations,” a statement says.
The ministry further says the Namibia dollar’s appreciation against the US dollar, averaging N$18.26 per US dollar in March, made fuel imports cheaper.
The statement says the interplay of geopolitical developments, production adjustments, and trade policies will continue to create an uncertain environment for oil prices in the coming months.
“However, the ministry will remain vigilant to these factors and monitor the shifting dynamics in the oil market for appropriate adjustments going forward,” it notes.
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