Increased supply from oil-producing countries around the world, coupled with weakened consumption stemming from economic uncertainties, are some of the factors that will see Namibian fuel prices remaining unchanged for August 2025. 

 In addition, a slight appreciation of the Namibia Dollar compared to the US Dollar helped cushion the impact of rising international diesel prices by slightly lowering the cost of imports in local currency terms.

This means Namibian motorists will continue forking out N$20.37 per litre for petrol, N$19.92 for diesel 50ppm and N$20.02 for diesel 10ppm. 

In a statement issued on Friday, the industries, mines and energy ministry noted that the National Energy Fund (NEF) will absorb under-recoveries experienced in the domestic market. 

Based on volumes consumed in June 2025, the NEF is expected to absorb an estimated cumulative under-recovery of approximately N$24.7 million.

“Based on the outcomes of the preceding input factors and other parameters considered in the fuel pricing mechanism, the model recorded an over-recovery of 0.46 cents per litre for ULP95. In contrast, significant under-recoveries of 90.62 cents per litre for diesel 50ppm and 83.86 cents per litre for diesel 10ppm were recorded during the review period,” reads the statement from Moses Pakote, executive director in the ministry. 

The ministry further noted that the Namibia Dollar strengthened against the US Dollar by 0.65% from 1 to 22 July 2025. 

“As a result, although diesel prices rose by nearly 3% in US Dollar terms, the net increase in Namibia Dollars terms was limited by approximately 2.3%, therefore reducing the extent of under-recoveries,” the ministry stated. 

The statement elaborated that during July 2025, global oil prices were largely influenced by high supply levels and moderate demand. 

“Oil-producing countries, especially within OPEC+, increased their output, particularly Saudi Arabia, leading to more supply than the market needed. At the same time, ongoing economic uncertainties continued to weaken fuel consumption in key regions. This contributed to a decline in the international cost of Unleaded Petrol. In contrast, the cost of diesel increased slightly due to limited global distillate supply and a steady demand from industries,” the statement reads. 

Meanwhile, shipping-related costs also moderated during July 2025, with demurrage, the penalty for vessel delays at berth charges and freight rates decreasing as vessel turnaround times improved and tanker availability remained high.