STAFF WRITER
Namibian motorists and the transporting public will breathe a sigh of relief this week following the announcement of a fuel price decrease by the Minister of Industries Mines and Energy Modestus Amutse on Wednesday.
Amutse announced that the Ministry has decreased fuel pump prices, effective 03 July 2026, at 00H00 midnight Friday.
“The pump price of Petrol 95 will decrease by 100 cents per litre, while the pump prices of all diesel grades will decrease by 400 cents per litre. Consequently, the new pump prices at Walvis Bay will be N$22.48 per litre for Petrol 95, N$24.26 per litre for Diesel 50ppm, and N$24.36 per litre for Diesel 10ppm. Pump prices in all other towns will be adjusted accordingly,” Amutse said.
He said this has been backed by the Namibian dollar which strengthened against the United States Dollar during the review period.
According to Amutse the average exchange rate stood at N$16.3649 per US Dollar, representing an appreciation of approximately 0.71 percent compared to the May 2026 average exchange rate of N$16.4827 per US Dollar.
The stronger exchange rate contributed to lower fuel import costs during the review period, Amutse said.
“Based on the outcomes of the preceding input factors and other parameters within the fuel pricing model, over-recovery of 124.853 c/l for ULP95, over- recoveries 490.322 c/| for Diesel 50ppm, and 496.206 c/I for Diesel 10pm were recorded during the review period,” Amutse said.
He said the Government has introduced a coordinated fuel supply Arrangement for the period July to September 2026.
Amutse said the strategic intervention is expected to provide significant benefits to Namibian consumers by ensuring that fuel imports are procured at the Basic Fuel Price (BFP) flat, without the additional import premiums that would ordinarily be charged above the BFP.
“By eliminating these premiums, the arrangement will help to contain fuel procurement costs, mitigate upward pressure on domestic fuel prices, and protect consumers from unnecessary price increases during the implementation period,” he said.
The minister added that the elimination of import premiums will also significantly strengthen the financial position of the National Energy Fund (NEF) by reducing its fuel price under-recovery obligations to petroleum importers.
“ During April and May 2026, the NEF incurred cumulative fuel price under-recoveries/shortfalls amounting to approximately N$1.3 billion, excluding import premiums, which averaged approximately N$300 million per month,” he said.
He added that, “The Emergency Fuel Supply Arrangement is therefore expected to substantially reduce these financial obligations, improve the sustainability of the fuel pricing framework, and enhance the Government’s capacity to maintain fuel price stability while safeguarding the long-term viability of the National Energy Fund.”
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