Energy Fund loses N$1.2 billion in the last year

The National Energy Fund has lost N$1.2 billion in the last year on account of its function to subsidise fuel prices on behalf of the government, its director Saima Neka said following the announcement of steep fuel price increases for April. “To date, since April 2021, the fund has paid out under-recoveries of N$1.2 billion, that is in addition to transportation of fuel to rural areas, was about N$72 million to make sure the fuel price is not high in those areas,” she said. According to Neke, the increase in transportation costs was brought about because the fuel cannot be moved on the country’s rail networks. Taxes and leviesPricing economist Petrus Nuuyoma had previously explained in an opinion piece that to arrive at the Walvis Bay pump price, domestic levies and taxes are added, some of which are statutory, imposed by different legislations. Statutory levies include the MVA Fund levy, Road User Charge for the Road Fund Administration (the biggest), Fuel Tax, National Energy Fund Equalisation Levy, and the Road Safety Council Levy. The non-statutory ones are the profit margins of oil companies and service station operators. To obtain the prices of various inland towns, rail and road transport costs are added to the Walvis Bay pump prices, and that is where the road transport subsidy from the National Energy Fund comes in. “Currently, the Walvis Bay petrol pump price comprises 58% of the international cost elements and 42% domestic levies and taxes, while the ratio for diesel is 55% of the international cost elements to 45% of domestic levies and taxes. It would not be wrong to assume that fuel prices would be 30% cheaper if we remove some levies/taxes,” Nuuyoma said.Temporary reliefDeputy mines minister Kornelia Shilunga added that the ministry would consider reducing or removing various oil levies currently imposed on motorists to soften the blow of rising fuel prices.Shilunga said it was an option the government was mulling given the uncertainty of the movement of the fuel price in response to Russia’s war on Ukraine. “We have spoken about temporary reduction. On those levies there are discussions that we are having on the impact it might have on these institutions that are beneficiaries,” she said. The Motor Vehicle Accident Fund, the Road Safety Council, the Road Fund Administration and the National Petroleum Corporation of Namibia are among the institutions that are funded partially through fuel levies, while the National Energy Fund is also funded to subsidise the price of fuel. “We know there might be impacts but we will also look at mitigating factors that will help out on those impacts,” she said. Motorists across the country will now have to fork out an additional N$1.95 for unleaded petrol, while diesel increases by N$2.95 on 6 April.

Energy Fund loses N$1.2 billion in the last year

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Namibian Sun 2026-04-27

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Energy Fund loses N$1.2 billion in the last year

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Namibian Sun 2026-04-27

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