Govt absorbs N$1.3bn fuel shock as pump prices rise
Government, through the National Energy Fund (NEF) Fuel Price Equalisation Fund, will pay a total amount of N$805 million to offset April 2026 cumulative under-recoveries and associated fuel premiums, and an additional projected amount of N$490 million to offset May 2026 cumulative under-recoveries and associated fuel premiums.
This comes after mines minister Modestus Amutse announced on Thursday that fuel prices in Walvis Bay will change at midnight on 8 May. Petrol 95 will cost N$23.48 per litre, following a N$1.42 increase, while Diesel 50ppm will increase to N$28.26 and Diesel 10ppm to N$28.36, both rising by N$4.63 per litre.
Under-recoveries stood at N$2.81 for ULP petroleum products, N$9.74 for Diesel 50ppm and N$9.68 for Diesel 500ppm.
A comparative analysis of regional fuel pump prices has shown that, as of May 2026, Namibia remains the most affordable among the Common Monetary Area member states.
According to the comparison table, Namibia’s petrol price stands at N$23.38 per litre, while diesel is priced at N$29.53 per litre.
Botswana follows with petrol at N$24.63 and diesel at N$30.85, while South Africa records N$26.63 for petrol and N$31.17 for diesel. Zambia’s petrol price is listed at N$24.07 and diesel at N$30.14.
Zimbabwe recorded the highest prices in the comparison, with petrol at N$34.73 per litre and diesel at N$34.89. Lesotho’s petrol price stands at N$25.90 and diesel at N$34.75, while Eswatini recorded N$25.27 for petrol and N$31.60 for diesel.
Amutse said government would continue with the temporary reduction and suspension of selected levies, in addition to a fuel road subsidy of N$13 million per month to subsidise the transportation of fuel to rural areas and far-flung destinations.
Namibia continued to receive scheduled fuel supplies and would continuously monitor fuel stock levels, Amutse said.
The country had sufficient fuel supply for the next three months, with no risk to security of supply at the moment.
Service stations have further been directed to refuel only into vehicles and machinery. The filling of drums and cans will not be permitted, except for those in possession of consumer installation certificates, for a period of three months in an effort to discourage stockpiling.
Individuals or businesses found not in compliance may be dealt with in terms of the relevant laws, Amutse warned.
Following the approved fuel price adjustments, government will absorb a total estimated amount of approximately N$1.3 billion payable to suppliers of petroleum products for the months of April and May 2026 through the National Energy Fund.
This intervention is aimed at cushioning consumers against the full impact of international oil price shocks while ensuring continuity and security of fuel supply in the country.
The minister said the Ministry of Industries, Mines and Energy had informed the Namibian public and stakeholders that government approved adjustments to fuel pump prices following sustained increases in international oil prices and heightened geopolitical tensions in the Middle East, particularly developments affecting global oil supply routes through the Strait of Hormuz.
“The Ministry wishes to reassure the nation that Namibia currently maintains adequate fuel stocks and that there are no immediate risks of fuel shortages in the country. The fuel supply chain remains operational and stable, with sufficient stockholding levels maintained by Oil Marketing Companies (OMCs) to meet national demand,” he said.
“Namibia imports all its refined petroleum products and therefore remains exposed to international oil market volatility and global supply chain disruptions,” he added.
Amutse said the fuel price adjustment had been necessitated by a combination of international market developments and increasing fuel importation costs, including continued geopolitical tensions in the Middle East affecting global oil markets, rising international crude oil and refined petroleum product prices, increased freight and shipping costs from international markets to the Port of Walvis Bay, higher insurance and fuel procurement premiums charged by suppliers, and exchange rate fluctuations between the Namibia Dollar and the United States Dollar, resulting in significantly higher under-recoveries recorded in the domestic fuel pricing mechanism.
As of 30 April 2026, the provisional under-recoveries recorded stood at N$2.81 c/l for ULP95, N$9.74 c/l for Diesel 50ppm and N$9.68 c/l for Diesel 10ppm during the review period.
