The strong performance of the Namibian Dollar (NAD) against the US Dollar (USD) in July, at N$18.21 to US$1, is among many factors that resulted in fuel prices remaining unchanged for August.

Motorists will once again breathe a sigh of relief as both petrol and diesel grades will remain unchanged.

This comes after the Ministry of Mines and Energy completed its monthly fuel price review.

The ministry, among others, cited the exchange rate figures for the period between the 1st and 22nd of July.

This indicates a 1.09% appreciation of the NAD against the USD at 18.21 cents, compared to 18.41 cents per USD at the end of June, on the back of a relatively stronger South African Rand (ZAR) to which the NAD is pegged.

The Ministry further says that despite the relative increase in oil production over July, particularly by the United States and other non-OPEC members, oil prices have edged up globally owing to the prevailing geopolitical tensions and associated volatility.

Despite this, a reduction has been observed in the shipping and freight costs for vessels that bring oil into the country from the international oil markets. 

After considering all the input factors as calculated into the fuel pricing model, the ministry recorded over-recoveries on both petrol and diesel, which are the combined effects of a stronger domestic currency and lower shipping costs. 

Despite this positive development, the situation in the international oil market remains volatile.