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Cheap fuel saved N$382m
21 Sep 2015
Cheap fuel saved N$382m
By Chamwe Kaira
LOWER fuel prices for most of the past year have seen the country saving about N$382 million through the National Energy Fund.
This was said by the public relations officer in the ministry of mines and energy, Ten Hasheela this week.
The fund has found itself mostly in red for many years. “Overall, the fund is in a good state in that any diagnostic will give it a clean bill of health,” said Hasheela. At the moment, the fund is worth a total amount of N$1,2 billion. But the figure can be wiped out in the event of a huge under-recovery or may balloon in the event of continuous months of overrecovery.
“The period you are referring to is the period of overrecoveries. That means oil companies brought in fuel at a lower price than the local pump prices. Hence, local pump prices had to be lowered, leading to total savings of N$382 million,” she said in a response to a question whether lower prices had a positive impact on the economy.
The fund was established in 1990 and its levies comprise an equalisation levy (Petroleum levy charged at 73 cents per litre and 87 cents on petrol and diesel. The levy consists of a Namcor levy (7,6 cents per litre), a strategic oil storage levy (40 cents on petrol and 50 cents on diesel), a fuel marking levy (2 cents) and an electricity levy (1,08 c/kWh).
The fund ensures that any underrecovery (international fuel prices higher than local national pump prices) that may arise will be taken care of.
It also subsidises the transporting of fuel to rural areas to ensure the equalisation of fuel prices countrywide. Levies are also remitted to other beneficiaries like the Motor Vehicle Accident Fund and Namcor.
RISING
Hasheela said the ministry expects that the price of fuel will rise in the coming months due to the strengthening of the US dollar against the rand. The Namibian dollar is pegged to the rand.
“Oil prices and conversely fuel prices are highly volatile and are hard to predict with absolute certainty. They are affected by production factors, global phenomena, speculation, currency fluctuations, market sentiment and other - all off which cannot be predicted. However, for the remainder of the year, the international crude oil price is expected to remain under the US$100 threshold,” she said.
ANGOLA
On the perennial question about importing fuel from Angola, Hasheela said the ministry is still busy with consultations to implement a memorandum of understanding between Angola and Namibia on oil imports. “There are still more agreements that should be in place before imports can take place and that is what has been taking much of the time to finalise,” she said.
FUEL STORAGE PLANT
Proving an update of a fuel storage plant at Walvis Bay, she said at the moment the contractor is on site and construction is ongoing. The project will be completed in 32 months from January 2015.
The capacity of the storage facility will total 75 million litres of diesel, unleaded petrol, HFO and Jet A1. The project will be constructed at a cost of N$3,6 billion.
- See more at: http://www.namibian.com.na/indexx.php?id=31756&page_type=story_detail&category_id=2#sthash.SySVlcic.dpufThe fund has found itself mostly in red for many years. “Overall, the fund is in a good state in that any diagnostic will give it a clean bill of health,” said Hasheela. At the moment, the fund is worth a total amount of N$1,2 billion. But the figure can be wiped out in the event of a huge under-recovery or may balloon in the event of continuous months of overrecovery.
“The period you are referring to is the period of overrecoveries. That means oil companies brought in fuel at a lower price than the local pump prices. Hence, local pump prices had to be lowered, leading to total savings of N$382 million,” she said in a response to a question whether lower prices had a positive impact on the economy.
The fund was established in 1990 and its levies comprise an equalisation levy (Petroleum levy charged at 73 cents per litre and 87 cents on petrol and diesel. The levy consists of a Namcor levy (7,6 cents per litre), a strategic oil storage levy (40 cents on petrol and 50 cents on diesel), a fuel marking levy (2 cents) and an electricity levy (1,08 c/kWh).
The fund ensures that any underrecovery (international fuel prices higher than local national pump prices) that may arise will be taken care of.
It also subsidises the transporting of fuel to rural areas to ensure the equalisation of fuel prices countrywide. Levies are also remitted to other beneficiaries like the Motor Vehicle Accident Fund and Namcor.
RISING
Hasheela said the ministry expects that the price of fuel will rise in the coming months due to the strengthening of the US dollar against the rand. The Namibian dollar is pegged to the rand.
“Oil prices and conversely fuel prices are highly volatile and are hard to predict with absolute certainty. They are affected by production factors, global phenomena, speculation, currency fluctuations, market sentiment and other - all off which cannot be predicted. However, for the remainder of the year, the international crude oil price is expected to remain under the US$100 threshold,” she said.
ANGOLA
On the perennial question about importing fuel from Angola, Hasheela said the ministry is still busy with consultations to implement a memorandum of understanding between Angola and Namibia on oil imports. “There are still more agreements that should be in place before imports can take place and that is what has been taking much of the time to finalise,” she said.
FUEL STORAGE PLANT
Proving an update of a fuel storage plant at Walvis Bay, she said at the moment the contractor is on site and construction is ongoing. The project will be completed in 32 months from January 2015.
The capacity of the storage facility will total 75 million litres of diesel, unleaded petrol, HFO and Jet A1. The project will be constructed at a cost of N$3,6 billion.
Cheap fuel saved N$382m
By Chamwe Kaira
LOWER fuel prices for most of the past year have seen the country saving about N$382 million through the National Energy Fund.
This was said by the public relations officer in the ministry of mines and energy, Ten Hasheela this week.
The fund has found itself mostly in red for many years. “Overall, the fund is in a good state in that any diagnostic will give it a clean bill of health,” said Hasheela. At the moment, the fund is worth a total amount of N$1,2 billion. But the figure can be wiped out in the event of a huge under-recovery or may balloon in the event of continuous months of overrecovery.
“The period you are referring to is the period of overrecoveries. That means oil companies brought in fuel at a lower price than the local pump prices. Hence, local pump prices had to be lowered, leading to total savings of N$382 million,” she said in a response to a question whether lower prices had a positive impact on the economy.
The fund was established in 1990 and its levies comprise an equalisation levy (Petroleum levy charged at 73 cents per litre and 87 cents on petrol and diesel. The levy consists of a Namcor levy (7,6 cents per litre), a strategic oil storage levy (40 cents on petrol and 50 cents on diesel), a fuel marking levy (2 cents) and an electricity levy (1,08 c/kWh).
The fund ensures that any underrecovery (international fuel prices higher than local national pump prices) that may arise will be taken care of.
It also subsidises the transporting of fuel to rural areas to ensure the equalisation of fuel prices countrywide. Levies are also remitted to other beneficiaries like the Motor Vehicle Accident Fund and Namcor.
RISING
Hasheela said the ministry expects that the price of fuel will rise in the coming months due to the strengthening of the US dollar against the rand. The Namibian dollar is pegged to the rand.
“Oil prices and conversely fuel prices are highly volatile and are hard to predict with absolute certainty. They are affected by production factors, global phenomena, speculation, currency fluctuations, market sentiment and other - all off which cannot be predicted. However, for the remainder of the year, the international crude oil price is expected to remain under the US$100 threshold,” she said.
ANGOLA
On the perennial question about importing fuel from Angola, Hasheela said the ministry is still busy with consultations to implement a memorandum of understanding between Angola and Namibia on oil imports. “There are still more agreements that should be in place before imports can take place and that is what has been taking much of the time to finalise,” she said.
FUEL STORAGE PLANT
Proving an update of a fuel storage plant at Walvis Bay, she said at the moment the contractor is on site and construction is ongoing. The project will be completed in 32 months from January 2015.
The capacity of the storage facility will total 75 million litres of diesel, unleaded petrol, HFO and Jet A1. The project will be constructed at a cost of N$3,6 billion.
- See more at: http://www.namibian.com.na/indexx.php?id=31756&page_type=story_detail&category_id=2#sthash.SySVlcic.dpufThe fund has found itself mostly in red for many years. “Overall, the fund is in a good state in that any diagnostic will give it a clean bill of health,” said Hasheela. At the moment, the fund is worth a total amount of N$1,2 billion. But the figure can be wiped out in the event of a huge under-recovery or may balloon in the event of continuous months of overrecovery.
“The period you are referring to is the period of overrecoveries. That means oil companies brought in fuel at a lower price than the local pump prices. Hence, local pump prices had to be lowered, leading to total savings of N$382 million,” she said in a response to a question whether lower prices had a positive impact on the economy.
The fund was established in 1990 and its levies comprise an equalisation levy (Petroleum levy charged at 73 cents per litre and 87 cents on petrol and diesel. The levy consists of a Namcor levy (7,6 cents per litre), a strategic oil storage levy (40 cents on petrol and 50 cents on diesel), a fuel marking levy (2 cents) and an electricity levy (1,08 c/kWh).
The fund ensures that any underrecovery (international fuel prices higher than local national pump prices) that may arise will be taken care of.
It also subsidises the transporting of fuel to rural areas to ensure the equalisation of fuel prices countrywide. Levies are also remitted to other beneficiaries like the Motor Vehicle Accident Fund and Namcor.
RISING
Hasheela said the ministry expects that the price of fuel will rise in the coming months due to the strengthening of the US dollar against the rand. The Namibian dollar is pegged to the rand.
“Oil prices and conversely fuel prices are highly volatile and are hard to predict with absolute certainty. They are affected by production factors, global phenomena, speculation, currency fluctuations, market sentiment and other - all off which cannot be predicted. However, for the remainder of the year, the international crude oil price is expected to remain under the US$100 threshold,” she said.
ANGOLA
On the perennial question about importing fuel from Angola, Hasheela said the ministry is still busy with consultations to implement a memorandum of understanding between Angola and Namibia on oil imports. “There are still more agreements that should be in place before imports can take place and that is what has been taking much of the time to finalise,” she said.
FUEL STORAGE PLANT
Proving an update of a fuel storage plant at Walvis Bay, she said at the moment the contractor is on site and construction is ongoing. The project will be completed in 32 months from January 2015.
The capacity of the storage facility will total 75 million litres of diesel, unleaded petrol, HFO and Jet A1. The project will be constructed at a cost of N$3,6 billion.
By Chamwe Kaira
LOWER fuel prices for most of the past year have seen the country saving about N$382 million through the National Energy Fund.
This was said by the public relations officer in the ministry of mines and energy, Ten Hasheela this week.
The fund has found itself mostly in red for many years. “Overall, the fund is in a good state in that any diagnostic will give it a clean bill of health,” said Hasheela. At the moment, the fund is worth a total amount of N$1,2 billion. But the figure can be wiped out in the event of a huge under-recovery or may balloon in the event of continuous months of overrecovery.
“The period you are referring to is the period of overrecoveries. That means oil companies brought in fuel at a lower price than the local pump prices. Hence, local pump prices had to be lowered, leading to total savings of N$382 million,” she said in a response to a question whether lower prices had a positive impact on the economy.
The fund was established in 1990 and its levies comprise an equalisation levy (Petroleum levy charged at 73 cents per litre and 87 cents on petrol and diesel. The levy consists of a Namcor levy (7,6 cents per litre), a strategic oil storage levy (40 cents on petrol and 50 cents on diesel), a fuel marking levy (2 cents) and an electricity levy (1,08 c/kWh).
The fund ensures that any underrecovery (international fuel prices higher than local national pump prices) that may arise will be taken care of.
It also subsidises the transporting of fuel to rural areas to ensure the equalisation of fuel prices countrywide. Levies are also remitted to other beneficiaries like the Motor Vehicle Accident Fund and Namcor.
RISING
Hasheela said the ministry expects that the price of fuel will rise in the coming months due to the strengthening of the US dollar against the rand. The Namibian dollar is pegged to the rand.
“Oil prices and conversely fuel prices are highly volatile and are hard to predict with absolute certainty. They are affected by production factors, global phenomena, speculation, currency fluctuations, market sentiment and other - all off which cannot be predicted. However, for the remainder of the year, the international crude oil price is expected to remain under the US$100 threshold,” she said.
ANGOLA
On the perennial question about importing fuel from Angola, Hasheela said the ministry is still busy with consultations to implement a memorandum of understanding between Angola and Namibia on oil imports. “There are still more agreements that should be in place before imports can take place and that is what has been taking much of the time to finalise,” she said.
FUEL STORAGE PLANT
Proving an update of a fuel storage plant at Walvis Bay, she said at the moment the contractor is on site and construction is ongoing. The project will be completed in 32 months from January 2015.
The capacity of the storage facility will total 75 million litres of diesel, unleaded petrol, HFO and Jet A1. The project will be constructed at a cost of N$3,6 billion.
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