The Ministry of Mines and Energy has announced that fuel prices will not change for the month of April, with pump prices of N$20.65 for diesel and N$19.78 for petrol at Walvis Bay.
“After entering the input factors into the new fuel pricing model, the Ministry recorded a combination of over and under-recoveries on petrol and both diesel products, namely an under-recovery of 29 cents per litre on petrol and over-recoveries of 75 cents per litre on diesel 50ppm, and 64 cents per litre on 10ppm, respectively,” the Ministry said on Monday.
The Ministry has also resolved to introduce a new model for calculating the basic fuel price (BFP) or import parity price for all price-controlled petroleum products.
“The oil industry was duly consulted throughout the review process and the new model was approved by the Minister for implementation with effect from the 1st of April 2023,” said Mines and Energy Spokesperson Andreas Simon.
Meanwhile, the Ministry has ordered fuel retailers to clearly brand diesel 10 parts per million (ppm) pumps to differentiate from the current running diesel 50ppm, thereby giving motorists an option.
This is after the Ministry has realised through the latest trade-flows of petroleum that trading of diesel 10ppm has become more prevalent, yet there is no branding at pump stations indicating such.
The Ministry further moved to implement price regulations of the new fuel in the Government Gazette which comes into force on Wednesday midnight.
“This is not an illegal fuel, it is something the ministry approved dating from 2018/19 after Namibia signed international conventions on decarbonisation. However, we did not envisage how quickly this will be implemented in the country, hence, now we are requesting that all retailers trading in 10ppm fuel must present brandings and marketing related to such visibility,” Simon said.
Diesel 10ppm is considered environmentally friendly, as it contains less sulphur compared to diesel 50ppm, which is widely in circulation.
He maintains that the industry was thoroughly consulted and many opted to trade with both fuels. Simon could however not independently say if there is any existence of retailers selling diesel 10ppm disguised as diesel 50ppm.
Chairperson of the Fuel and Franchise Association (FAFA), Deklen Viviers, said they are not aware of the trading of a third type of fuel being imported into the country, and whether it was being sold illegally or not.
“We are only aware of petrol and diesel, but, about 10ppm we have no idea. So if this is being traded illegally by some fuel retailers under the spell of diesel 50ppm, the ministry should do investigations, and apply appropriate action against the perpetrators. Also, the ministry is not obliged to inform us if they establish something, however, we shall engage so that we are informed,” Viviers said.
