Fuel Price Hike in Namibia
As of April 1st, Namibians will have to pay more for fuel. The price of petrol will increase by 2.50 Namibian dollars per liter, while diesel will rise by 4 Namibian dollars per liter. This is one of the most significant increases in several months.
Announcement by the Minister
The announcement was made on Friday, March 27, by the Minister of Industry, Mines, and Energy, Modestus Amutse, during a press conference in Windhoek.
Two Main Causes
The tensions in the Middle East have led to a surge in global prices. Diesel 50ppm has jumped by 122% in just one month, while petrol 95 has increased by nearly 57%. The Namibian currency has also weakened. In March, the Namibian dollar fell from 16.00 to 16.62 units per US dollar, a depreciation of 4%. As a result, imports have become even more expensive.
Government Intervention
The government has announced two emergency measures. Firstly, a 50% reduction in fuel taxes, effective from April to June 2026. Secondly, the National Energy Fund will cover approximately 500 million Namibian dollars per month to absorb some of the additional costs.
Structural Vulnerability
Namibia has no refineries and imports all its fuel needs. The country's annual consumption reaches 1.1 billion liters, with 70% being diesel. Current stocks cover between one and two months of national consumption.
