The Ministry of Mines, Industries and Energy has announced a reduction in domestic fuel prices, effective Wednesday, 4 June 2025.
According to the Ministry, the price of petrol will decrease by 30 cents per litre, while both diesel 50ppm and diesel 10ppm will drop by 70 cents per litre.
The new pump prices at Walvis Bay according to the ministry, will be N$20.37 per litre for petrol 95, N$19.92 for diesel 50ppm, and N$20.02 for diesel 10ppm.
Fuel prices across the rest of the country will be adjusted accordingly.
The Ministry said the price cut follows a decline in global diesel prices during May, mainly due to fears of oversupply and weaker demand.
“OPEC+ signalled a potential increase in production, raising concerns about a saturated market and further depressing prices,” the Ministry noted.
It added that global economic uncertainty, worsened by ongoing trade tensions, also contributed to reduced demand for crude oil, pushing prices below US$80 per barrel.
However, the Ministry pointed out that shipping costs for refined fuel rose during the same period.
“Freight and demurrage costs for clean tanker vessels increased due to expanded U.S. sanctions on Russia and heightened demand for Middle Eastern oil shipments to Asia,” it said.
Despite these logistical pressures, the appreciation of the Namibia dollar helped cushion the impact of global price movements.
“From 1 to 22 May, the average exchange rate was N$18.2120 per US dollar, reflecting a 3.66% appreciation compared to the April average of N$18.9045.This improves the purchasing power for fuel imports and helps moderate local fuel prices,” the Ministry said.
Based on these inputs, the Ministry said its fuel pricing model recorded over-recoveries of 36.467 cents per litre for petrol, 79.608 cents for diesel 50ppm, and 87.383 cents for diesel 10ppm.
The Ministry said it remains committed to “monitoring global and regional fuel market dynamics and implementing price adjustments that reflect economic realities while safeguarding the interests of Namibian consumers.”
