A welcome relief awaits motorists this Wednesday, 4 February, when both petrol and diesel pump prices will be reduced. After its review of fuel prices for February 2026, the Ministry of Industries, Mines, and Energy stated that petrol will decrease by N$1.00 per litre, while prices for both diesel grades will decrease by 50 cents per litre.
The new pump prices at Walvis Bay will therefore be N$19.58 per litre for Petrol 95, N$19.63 per litre for Diesel 50ppm, and N$ 19.73 per litre for Diesel 10ppm. Pump prices across the rest of the country will be adjusted in line with these changes.
The ministry based its decision on international crude oil and refined petroleum product prices recorded in January 2026, which declined primarily due to increased global oil supply from major producers. This oversupply outpaced demand, resulting in rising global inventories.
Moreover, low geopolitical risk premiums and subdued global demand growth further caused downward pressure on global oil prices. In addition, the Namibian Dollar appreciated against the United States Dollar, which is used to trade oil on the international market. These market conditions led to lower import parity prices for petrol and diesel, resulting in over-recoveries on fuel prices and enabling a downward adjustment in pump prices.
According to the Ministry’s latest calculations, the average price of Petrol 95 for 1 to 23 January 2026 was US$74.30 per barrel, a 4.12% decrease from the December 2025 average of US$77.49. In contrast, the average price of Diesel 50ppm during the same period decreased to US$79.44 per barrel, a 2.48% decrease from US$81.47 in December 2025. Diesel 10ppm averaged US$79.48 per barrel, down 2.47% from the December 2025 average of US$81.49.
Another factor is that the Namibia Dollar strengthened against the US Dollar during the review period, averaging N$16.41 per USD. This represents a 2.43% appreciation relative to the December 2025 average exchange rate of N$ 1.82 per USD.
Based on the outcomes of the preceding input factors and other parameters considered in the fuel pricing mechanism, the pricing model recorded over recoveries of 127.48 cents per litre for ULP95, 80.17 cents per litre for Diesel 50ppm, and 89.77 cents per litre for Diesel 10ppm, during the review period. This indicates that regulated prices exceeded the costs reflected in the pricing model.
Furthermore, the Ministry resolved to increase the dealer margin for service station operators by 14 cents per litre, from 222 cents per litre to 236 cents per litre.
-ebrandt@nepc.com.na
