A decrease in global diesel prices last month due to a combination of oversupply fears and trade tensions will see Namibians paying less at the fuel pumps during June. Global economic uncertainty, aggravated by Trump Always Chickens Out (TACO) policies, has contributed to weakened demand which could potentially surge if OPEC+ follows through to increase production which would further saturate the market and depress prices. 

As a result, the industries, mines and energy ministry noted that global crude oil prices fell below US$80 per barrel, reflecting a bearish market outlook.

This means some relief to local motorists as domestic fuel pump prices will reduce as of today, 4 June 2025. The price of petrol will decrease by 30 cents per litre and the price of both diesel variants, diesel 50ppm and diesel 10ppm, will decrease by 70 cents per litre. As a result, the new pump prices at Walvis Bay will be N$20.37 per litre for Petrol 95, N$19.92 per litre for diesel 50ppm and N$20.02 for diesel 10ppm. Pump prices across the rest of the country will be adjusted accordingly.

The ministry further noted that freight and demurrage costs for clean tanker vessels increased due to expanded US sanctions on Russia and heightened demand for Middle Eastern oil shipments to Asia. These shipping challenges added logistical pressures to refined fuel distribution, despite an overall decline in diesel prices.

“According to the ministry’s recent calculations, the average price of petrol 95 for the period 1 to 22 May was US$78.195 per barrel, representing a 0.58% increase compared to the full-month average price of US$77.745 recorded in April. For diesel 50ppm, the average price during the same May period was US$78.227 per barrel, reflecting a 3.02% decrease from the April average of US$80.667 per barrel,” the ministry stated.  

A ministerial statement added that despite changes in the international oil prices, the Namibia dollar strengthened against the US dollar during May, reflecting a 3.66% appreciation compared to the full-month average rate. 

“This appreciation improves the purchasing power for fuel imports, helping to moderate the impact of global price fluctuations on local fuel costs,” the ministry explained. 

The ministry continued that it remains committed to monitoring global and regional fuel market dynamics and implementing price adjustments that reflect economic realities while safeguarding the interests of Namibian consumers.