The Ministry of Industries, Mines and Energy’s acting executive director, Erasmus Shivolo (ES), has reiterated that Namibia’s fuel supply framework was designed to withstand external shocks through diversified sourcing strategies, continuous international procurement and a combination of state-owned and private-sector storage infrastructure.
This is as the government reassured businesses and individuals that Namibia’s fuel supply system remains stable despite mounting fears over the tensions between the United States and Iran.
However, the Ministry of Industries, Mines and Energy (MIME) has cautioned that prolonged instability in global oil markets could further increase domestic fuel costs and place more pressure on international shipping logistics. This week New Era’s Head of Business, Edgar Brandt (EB), furtherinterrogated Shivolo on the status of fuel security in the country:
EB: What contingency plans are in place if Namibia’s strategic fuel reserves are depleted faster than anticipated?
ES: Namibia’s fuel supply system is designed around a combination of private sector-driven commercial supply arrangements and state-owned national infrastructure, rather than reliance on a single source.
In the event of increased pressure on available stock, supply continuity is supported through ongoing international procurement by oil marketing companies and Namcor, who source petroleum products from diversified global markets. In addition, the country maintains established import logistics through Walvis Bay, supported by storage infrastructure and distribution networks that allow for continuous replenishment of fuel supplies.
Government continues to monitor developments in global energy markets and engages industry stakeholders to ensure that appropriate measures are taken to maintain supply stability in its efforts towards always ensuring the security of fuel supply.
EB: To what extent can the National Oil Storage Facility (NOSF) sustain uninterrupted supply under a prolonged global supply shock?
ES: The National Oil Storage Facility plays an important role in Namibia’s fuel supply system by providing storage capacity that supports supply management and operational flexibility.
However, Namibia’s fuel supply does not rely on a single facility. The country’s supply system is supported by a combination of state-owned and private sector commercial storage, ongoing imports through Walvis Bay, and established supply arrangements by oil marketing companies and Namcor. In the context of a prolonged global supply shock, the focus remains on maintaining continuous replenishment of fuel through international procurement, rather than relying solely on stored volumes.
Government continues to work closely with industry stakeholders to ensure that supply chains remain functional and responsive to changing global conditions.
EB: How exposed is Namibia to supply disruptions in the Strait of Hormuz?
ES: The Strait of Hormuz is a key global energy transit route, and disruptions in that region can affect international oil markets to a huge extent. For Namibia, the exposure is primarily on the price pressure and not necessarily on product availability, as the country sources petroleum products through diversified international oil markets rather than relying on a single geographic supply route.
This means that the main transmission channel of such disruptions is typically through global oil prices, shipping costs and insurance premiums, rather than an immediate physical supply constraint. Namibia’s fuel supply system is supported by diversified sourcing through oil marketing companies and Namcor, which helps reduce reliance on any single region.
EB: How is the MIME mitigating the risk of shipping disruptions, higher insurance costs, or rerouting of tankers linked to the conflict?
ES: The Ministry continues to closely monitor developments in global shipping and energy markets in collaboration with industry stakeholders, including oil marketing companies, Namcor, and logistics operators.
Fuel procurement and shipping arrangements in Namibia are largely managed on a commercial basis by oil marketing companies and Namcor, who continuously adjust sourcing strategies, shipping routes and contractual arrangements in response to changing global conditions.
Where necessary, alternative sourcing options and routing arrangements can be utilised to ensure continuity of supply.
At a policy level, the ministry’s role is to maintain a stable and enabling regulatory environment while monitoring cost pressures such as freight and insurance, which may form part of the fuel price review process.
Namibia sources fuel largely from the Gulf region, but are there alternative supply markets currently being secured?
Namibia sources petroleum products through diversified international oil markets, and procurement is largely managed on a commercial basis by oil marketing companies and Namcor. While the Gulf region is an important global refining hub, Namibia is not limited to a single source. Petroleum products can be sourced from a range of international oil refining centres, including regions such as the Mediterranean, Singapore and other global oil markets, depending on prevailing market conditions.
Oil marketing companies and Namcor continuously adjust their sourcing strategies to ensure cost efficiency and supply reliability, particularly during periods of global oil market uncertainty. This flexibility in oil sourcing helps support the stability of Namibia’s fuel supply system.
EB: Has the ministry already experienced delays or constraints in fuel deliveries since the outbreak of the US-Iran conflict?
ES: At this stage, there is no indication of any significant disruptions to fuel deliveries into Namibia. The country continues to receive petroleum products through established international oil procurement channels, and supply logistics remain operational.
The Ministry continues to monitor developments in global energy and shipping markets closely, in collaboration with industry stakeholders, to ensure that any emerging risks are identified and managed proactively.
EB: What is MIME’s assessment of the worst-case scenario for Namibia’s fuel supply chain?
ES: The ministry does not approach the situation in terms of worst-case scenarios but rather through continuous monitoring and risk management of global developments.
In general, sustained disruptions in global oil markets could add pressure on international prices, shipping costs and supply logistics. However, Namibia’s fuel supply system is structured around diversified sourcing, established import infrastructure and ongoing procurement by oil marketing companies and Namcor, which helps manage such risks.
The focus remains on ensuring that oil supply chains remain functional and responsive under changing global conditions. At this stage, there is no indication of immediate oil supply disruptions, and the system continues to operate through established international channels.