Government, through the National Energy Fund (NEF), will absorb an estimated N$47.2 million in fuel costs during June 2026 to prevent an increase in domestic petrol prices.
The absorption is part of ongoing government efforts to shield Namibian consumers and businesses from volatile international energy markets.
Minister of Industries, Mines and Energy Modestus Amutse on Friday announced that fuel pump prices will remain unchanged throughout June despite mounting pressure from higher international fuel prices.
The ministry’s decision comes as global oil markets continue to grapple with supply uncertainties, fluctuating crude prices and seasonal demand increases in major economies, factors that have pushed up the cost of importing fuel into Namibia.
Under the latest fuel price review, government will absorb the entire petrol under-recovery through the NEF, effectively subsidising motorists and preventing what would otherwise have been a massive fuel price increase at the pumps.
This intervention underscores the increasingly important role being played by the NEF in stabilising domestic fuel prices amid global uncertainty.
The fund has become a key policy tool for government to smooth fuel price fluctuations and limit the impact of international oil price shocks on local consumers.
Government’s intervention highlights the growing financial burden being carried by the State as it seeks to cushion households, transport operators and businesses from rising energy costs that could feed into broader inflationary pressures across the economy.
This means motorists will continue paying N$23.48 per litre for petrol 95 in Walvis Bay, while diesel 50ppm and diesel 10ppm will remain at N$28.26 and N$28.36 per litre, respectively.
The ministry said upward pressure on petrol prices was largely driven by tightening global fuel inventories and increased seasonal demand ahead of the Northern Hemisphere summer travel season.
International petrol prices rose during the review period, resulting in an under-recovery in Namibia’s domestic pricing mechanism.
While diesel products recorded over-recoveries, the gains were insufficient to entirely offset the pressure in the petrol market.
The ministry noted that declining freight and shipping costs to the Port of Walvis Bay helped ease some of the pressure.
Also, exchange rate movements between the Namibian dollar and the United States Dollar provided limited relief by reducing the scale of the under-
recovery.
Nevertheless, government concluded that allowing the full increase to flow through to consumers would place additional strain on an economy already facing rising operating costs.