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Petrol price to increase on Wednesday

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(Globalpost/GlobalPost)

The Minister of Mines and Energy, Isak Katali has announced that petrol prices will increase on Wednesday.

Meanwhile, the price of diesel will remain unchanged at the cost N.dollars 11,26 per litre.

The minister said in a media statement availed to Nampa on Tuesday that petrol pump prices will increase countrywide at 00h01 on 10 April 2013.

The 93 Octane Lead Replacement Petrol will increase by 10 cents per litre (retail), bringing the new Walvis Bay pump price to N.dollars 11.04 per litre; while 95 Octane Unleaded Petrol will increase by 10 cents per litre (retail) to cost N.dollars 11,15 per litre at the coastal hub.

Katali said there are two factors that determine the prices of oil in the global oil market such as the fundamental laws of supply and demand and a nagging fear.

“Recent months have seen the first factor being tested by fluctuations in oil prices. The improving global economy is strengthening the demand for oil, thereby increasing the price,” he said.

Katali said the supply curve in the market is upward sloping, in that more can only be supplied at a relatively higher price.

He added that the oil producing countries are, however, cutting their production and supply to maintain a shortage of oil in the market, surpassed by demand, for oil prices to soar.

Katali said the cruel oil climbed to just over US dollars 122 (N.dollar 1,095.62) a barrel in the last quarter of March 2013.

He added that oil prices continue to be on the upward trend primary due to political conflict in the oil-rich region, thereby threatening the prospects of increased production despite substantial investment in the upstream industry.

The minister said the National Energy Fund (NEF) has pledged to the nation to mobilise funds to build a national oil storage facility in Walvis Bay to ensure security of supply in the local oil market during hard times.

He said this pledge would only be fulfilled if there is a substantial amount of money to invest in the project.

“It is for this reason that the ministry has granted a 3 cents per litre increase in the NEF levy to execute that noble task,” Katali said.

The minister added that after the dealer margin survey was successfully completed in the previous financial year, it came out that retailer are operating on a loss and there is a need for the dealer margin to be adjusted to make their businesses flourish.

Katali said his ministry decided to increase the dealer margin with 2 cents per litre.

(edited)WINDHOEK: The Minister of Mines and Energy, Isak Katali has announced that petrol prices will increase on Wednesday.

Some citizens will however be happy to know the price of diesel will remain unchanged at N.dollars 11,26 per litre.

The minister said in a media statement availed to Nampa on Tuesday petrol pump prices will increase countrywide at 00h01 on 10 April 2013.

According to the statement, 93 Octane Lead Replacement Petrol will increase by 10 cents per litre (retail), bringing the new Walvis Bay pump price to N.dollars 11.04 per litre; while 95 Octane Unleaded Petrol will increase by 10 cents per litre (retail) to cost N.dollars 11,15 per litre at the coastal hub.

Katali said there are two factors which determine the prices of oil in the global market, such as the fundamental laws of supply and demand, and “a nagging fear”.

“Recent months have seen the first factor being tested by fluctuations in oil prices. The improving global economy is strengthening the demand for oil, thereby increasing the price,” he explained.

Katali stated that the supply curve in the market is upward-sloping in that more can only be supplied at a relatively higher price.

Oil-producing countries are, however, cutting their production and supply to maintain a shortage of oil in the market, surpassed by demand, for oil prices to soar.

Crude oil climbed to just over US.dollars 122 (N.dollar 1 095,62) a barrel in the last quarter of March 2013.

The minister added that oil prices continue to be on an upward trend primarily due to political conflict in oil-rich regions, thereby threatening the prospects of increased production despite substantial investment in the upstream industry.

The minister said the National Energy Fund (NEF) has pledged to the nation to mobilise funds to build a national oil storage facility in Walvis Bay to ensure security of supply in the local oil market during hard times.

He said this pledge will only be fulfilled if there is a substantial amount of money to invest in the project.

“It is for this reason that the ministry has granted a three cents per litre increase in the NEF levy to execute the task,” Katali said.

The minister added that after the dealer margin survey was successfully completed in the previous financial year, it came out that retailers are operating at a loss and there is a need for the dealer margin to be adjusted to make their businesses flourish. Katali said his ministry decided to increase the dealer margin by 2 cents per litre.

http://www.globalpost.com/dispatch/news/asianet/130411/petrol-price-increase-wednesday