Namibia has three months of fuel reserves amid Iran war

Namibia currently has enough fuel reserves to cover about three months of national demand, even as escalating conflict in the Middle East threatens to disrupt global oil markets.

According to the National Petroleum Corporation of Namibia (Namcor), a shipment of oil is already on its way to the country, while the national oil storage facility holds sufficient reserves to cushion Namibia against immediate supply shocks.

Namcor spokesperson Paulo Coelho said the reserves provide a short-term buffer despite growing global uncertainty following intensified hostilities between the United States, Israel and Iran.

Global tensions rattle markets

The crisis escalated after joint US and Israeli airstrikes killed Iran’s supreme leader, Ali Khamenei, triggering retaliatory missile strikes by Iran on US military installations across the region.

US president Donald Trump has vowed that bombing raids would continue “as long as necessary”, while Iran’s president Masoud Pezeshkian warned that retaliation was the country’s "legitimate right and duty".

The war has raised fears of disruptions in the Strait of Hormuz, one of the world’s most important oil shipping routes, through which a large share of global crude oil exports pass.

Price pressure likely

As of yesterday, the benchmark oil price has passed US$100 a barrel for the first time since 2022.

Last week, acting deputy director of petroleum affairs in the mines and energy ministry, Abednego Ekandjo, said any closure or disruption in the Strait of Hormuz would affect fuel-importing countries worldwide.

However, he said Namibia’s supply network is diversified enough to avoid immediate shortages.

“We do not source only from a single source,” Ekandjo said, noting that Namibia imports fuel products from markets including India, China, Europe and African suppliers such as Nigeria and Libya.

Even so, he warned that the conflict could significantly affect global oil prices and shipping costs.

 “Trade flows are affected, supply is affected. Prices will start to increase," he said.

"It is a highly volatile situation impacting cost per barrel and shipping costs,” Ekandjo noted, adding that between 20% and 25% of global oil supply originates from the region now caught up in the conflict.

Local prices unchanged for now

For now, Namibian consumers are shielded from immediate price increases.

The Ministry of Industries, Mines and Energy announced that fuel pump prices would remain unchanged for March.

At the coast, petrol remains at N$19.58 per litre, diesel 50 ppm at N$19.63 per litre, and diesel 10 ppm at N$19.73 per litre. Dealer margins were, however, increased by two cents to N$2.38 per litre from 4 March.

Fuel supplier Puma Energy said current tensions are already increasing market volatility, as well as insurance and freight costs, even though global fuel supplies remain adequate.

“For African countries, the primary impact would likely be felt through pricing rather than immediate physical shortages,” the company said.

Puma added that there is currently no indication of any disruption to fuel availability in Namibia.

Need for long-term energy resilience

Despite the current buffer, the company warned that geopolitical shocks highlight the vulnerability of African economies that depend heavily on imported refined fuel products.

It said continued investment in strategic reserves, storage infrastructure and diversified supply routes will be critical to strengthening energy security across the continent.

Building deeper regional coordination and expanding domestic capacity where possible would also help African countries better withstand future global market disruptions, Puma said.