Namibia’s fuel quality watchdogs are under renewed scrutiny.
This is as concerns mount over illegal cross-border fuel, known locally as ‘Ngungula’, and the integrity of the country’s regulated supply chain.
At the centre of the monitoring and regulatory system is the Ministry of Industries, Mines and Energy (MIME), mandated to ensure every litre of petrol and diesel imported, stored and sold in Namibia meets national quality standards. “Namibia relies on a combination of licensing controls, border enforcement, inspection and sampling, record audits and inter-agency cooperation to prevent smuggled Angolan fuel from entering the regulated retail fuel system,” said Moses Pakote, MIME executive director.
Under the Petroleum Products and Energy Act, MIME regulates the entire downstream petroleum sector. That authority includes prescribing fuel specifications, licensing importers and retailers, conducting inspections and enforcing penalties where standards are breached.
On the ground, enforcement rests heavily on fuel inspectors, frontline officers tasked with monitoring fuel quality across the country.
Responding to New Era queries, Pakote stated that inspectors conduct routine and random fuel sampling at ports of entry, bulk storage depots, distribution terminals and retail service stations.
Samples are tested to verify compliance with prescribed technical standards, including sulphur content, octane rating, density and flash point.
Any deviation can signal contamination, adulteration or illegal sourcing.
Beyond sampling, inspectors audit fuel storage facilities, tank farms and service stations to ensure proper handling practices and environmental compliance.
They also verify that operators hold valid petroleum licences and adhere to attached conditions.
Where any irregularities are identified, inspectors can issue compliance notices and recommend enforcement action, including product seizure, fines, suspension or cancellation of licences, as well as criminal prosecution.
Fuel inspectors also investigate consumer complaints related to fuel quality and suspected adulteration, preparing detailed reports that inform decisions at the ministerial level.
Ultimately, they serve as Namibia’s technical and regulatory shield against substandard or illicit fuel.
Standards
Supporting the ministry’s enforcement work is the Namibian Standards Institution (NSI), which does not police imports but instead develops and publishes national fuel standards aligned with regional and international benchmarks such as the Southern African Development Community and International Standardisation Organisation frameworks.
“Namibia aligns its fuel standards with regional and international requirements to ensure environmental protection, engine performance and compatibility with modern vehicle technologies. Together, these mechanisms help safeguard consumers, protect the environment and maintain fair trade practices in the petroleum sector,” the seasoned technocrat said. These standards define permissible limits for sulphur levels, contamination thresholds and other critical parameters that protect engines, reduce emissions and ensure compatibility with modern vehicle technologies.
MIME then ensures full compliance through inspections and testing before fuel reaches Namibian consumers.
Moreover, preventing smuggled fuel, particularly from neighbouring Angola where different standards are implemented, from entering the domestic retail system requires coordination beyond the ministry.
This is where the Namibia Revenue Agency (NamRA), alongside border control authorities and law enforcement agencies, monitors fuel imports at official entry points.
All fuel entering Namibia must be declared, taxed and supported by valid documentation.
Undeclared fuel is subject to seizure. This customs oversight is critical, as fuel sold through the formal system carries regulated levies and taxes that contribute significantly to state revenue.
Smuggled fuel bypasses these charges, creating revenue leakages and distorting market pricing.
Price monitoring can also expose suspiciously low-priced fuel, often a red flag for illegal sourcing. Namibian law requires that all importers, wholesalers and retailers be licensed.
Retail service stations may only procure fuel from approved and licensed wholesalers, creating a controlled supply chain designed to limit opportunities for illicit product infiltration.
Fuel inspectors also conduct stock reconciliations and audit records of fuel volumes purchased and sold.
This is where unexplained discrepancies can indicate illegal supply channels.
NamRA
In fact, inter-agency collaboration, involving NamRA, the Namibian Police and border security, strengthens surveillance, particularly in northern border regions, where smuggling is most prevalent.
Despite these mechanisms, smuggled fuel that has not been refined to Namibian-approved standards continues to surface.
Investigations indicate that ‘ngungula’ is often stored at makeshift storage points that typically lack proper tanks, fire suppression systems, bunded containment areas and environmental safeguards.
The risks are severe and could entail fires, explosions, soil contamination and threats to surrounding communities.
Confiscated fuel is also stored at police stations, which is a practice widely acknowledged as unsafe because police facilities are not designed for bulk storage of flammable liquids.
Recognising the hazard, MIME has procured and installed aboveground storage tanks at police stations in affected regions to provide safer interim storage.
Budgetary provisions have been made for additional tanks as confiscations increase.
MIME has also entered an arrangement with a licensed company authorised to handle used oil and petroleum waste, to manage and dispose of seized fuel in compliance with environmental regulations.
Meanwhile, the prevalence of illegal fuel carries significant economic consequences.
Legitimate fuel retailers and wholesalers in affected areas struggle to compete with the lower prices of untaxed fuel, undermining fair competition and destabilising the formal market.
At the same time, consumers risk unknowingly purchasing substandard fuel that can damage vehicles and increase emissions.
Ultimately, responsibility for safeguarding Namibia’s fuel quality rests squarely with MIME as the statutory regulator.
Insiders said the real test lies in consistent enforcement.
As illegal fuel networks adapt and border challenges persist, the spotlight remains on the public officials charged with protecting both the public purse and engines that power the domestic economy.
Ngungula
What is more, Ngungula is the colloquial name for fuel smuggled from Angola, where it is more affordable than that sold in Namibian service stations.
The term is derived from the word, ‘okungungula’, which is an Oshiwambo term for trotting or running steadily.
A five-litre container of petrol or diesel is sold at N$70, while a 25-litre container goes for as little as N$340.
The booming industry has seen homesteads around Oshikango turn into service stations, elbowing established ones out of business, while some drive from nearby regions to buy ‘Ngungula’ to resell.
Despite ongoing efforts by police to stop the illegal fuel trade, the situation remains hard to control, as the number of Angolan fuel sellers increases daily.
Some smugglers claim that they take advantage of what they perceive as leniency by the Namibian Police Force, as there have been no reports of injuries during these encounters.
Already, four fuel service stations in the Ohangwena region have reportedly closed due to competition from ‘Ngungula’.
Late last year, it was reported that fuel retailers in northern Namibia lost more than N$230 million in revenue between 2016 and 2024 due to the persistent cross-border smuggling of petrol and diesel from Angola.