Fuel prices unchanged for June despite mounting pressure

Fuel prices will remain unchanged throughout Namibia during June, despite continued pressure on international oil markets and growing strain on the country's fuel price stabilisation mechanism.

Minister of Industries, Mines and Energy, Modestus Amutse, announced on Friday that petrol and diesel pump prices would remain unchanged for the month.

Petrol will continue to retail at N$23.48 per litre in Walvis Bay, while 50ppm diesel will remain at N$28.26 per litre and 10ppm diesel at N$28.36 per litre.

Amutse assured consumers that Namibia's fuel supply remains secure.

"Namibia currently maintains adequate fuel stocks and there are no immediate risks of fuel shortages in the country," he said.

"The fuel supply chain remains operational and stable, with sufficient stock-holding levels maintained by oil marketing companies to meet national demand."

NEF cushions consumers

The minister said the government has relied heavily on the National Energy Fund (NEF) to shield motorists from the full impact of rising international fuel costs.

According to Amutse, the NEF has implemented substantial interventions to absorb under-recoveries, including spending N$47.2 million to offset losses on petrol alone.

The decision has allowed Namibia to maintain fuel prices below those of neighbouring countries.

Amutse noted that motorists in Botswana, South Africa, Zambia, Zimbabwe, Lesotho and Eswatini are paying significantly more at the pump. In Zimbabwe, for example, petrol sells for the equivalent of N$34.73 per litre, while 50ppm diesel costs N$34.89 per litre.

Reserves nearly exhausted

In a follow-up statement issued on Saturday, the minister addressed what he described as misinformation circulating on social media regarding government's emergency fuel supply arrangement with global energy trader Vitol for the period July to September.

Amutse said geopolitical tensions in the Middle East had fundamentally altered global oil markets, driving up fuel costs and forcing government to spend heavily to protect consumers.

"In Namibia, we have seen significant increases in pump prices, and the government has had to commit substantial resources, well over N$1 billion, to cushion our people and keep the economy stable," he said.

He warned that the financial buffer built up in the NEF is now close to depletion.

"The substantial surplus previously built up in the NEF is today almost exhausted."

"It has gone into absorbing the under-recoveries and the premiums charged on top of the Basic Fuel Price, in order to safeguard our security of fuel supply. This situation could not be allowed to continue unchecked."