Despite an increase in global oil prices, mostly because of supply chain constraints coupled with growing geopolitical tension affecting international oil markets, fuel prices in Namibia will remain unchanged for October 2025. The National Energy Fund will absorb all under-recoveries in the domestic fuel sector. 

This announcement by the industries, mines and energy ministry means the price of petrol will remain at N$20.37 per litre, diesel 50ppm will stay at N$19.92 per litre, and diesel 10ppm will be maintained at N$20.02 per litre, as was the case the previous month. 

In its monthly fuel price review the ministry noted that during September 2025 the United States of America crude inventories recorded sharp drawdowns, signalling reduced supply buffers, while Ukraine’s intensified strikes on Russian refineries and new US restrictions cut exports that disrupted global fuel flows. In addition, freight and logistics costs climbed, narrowing discounts on Russian crude and raising landed costs, which in turn led to higher global fuel prices.

The ministry’s calculations show that from 1 to 22 September the average price of petrol 95 was US$84.73 per barrel, representing a 3.1% increase from the August average of US$82.20. During the same period the price of diesel 50ppm increased to US$88.465 per barrel, reflecting a 3.2% increase from US$85.75 recorded in August and diesel 10ppm went up by 3.2%. 

Meanwhile, from 1 to 22 September the Namibia dollar appreciated marginally by 1.2% compared to the August average. “This appreciation helped offset rising shipping costs by slightly lowering the cost of imports in local currency terms, thereby reducing the extent of under-recoveries,” read the ministry statement issued by executive director, Moses Pakote. 

The ministry added that based on these input factors and other parameters considered in the fuel pricing mechanism, the domestic fuel model recorded an under-recovery of 10.37 cents per litre for ULP95, while diesel 50ppm and diesel 10ppm recorded under-recoveries of 52.91 cents per litre and 44.85 cents per litre respectively. 

The ministry concluded that as Namibia currently imports all petroleum products it is closely monitoring international oil price trends to safeguard consumers from paying exorbitant fuel prices.