Fuel prices in Namibia will increase by N$2.00 per litre from 5 August 2026 after the government reinstated fuel levies that had been temporarily reduced, with higher international oil prices adding further pressure on pump prices.
Announcing the August fuel price adjustment, Minister of Industries, Mines and Energy Modestus Amutse said the National Energy Fund (NEF) will absorb diesel under-recoveries and the remaining two cents per litre levy to limit the increase passed on to consumers.
“At this juncture, many Namibians may be asking why fuel prices may increase. The answer is simple. The current fuel price adjustment is primarily the result of the reinstatement of the four levies which had been temporarily reduced by 50% over the past three months as a government intervention to cushion consumers from the sharp increases experienced in the international oil prices,” Amutse said.
The new pump prices at Walvis Bay will be N$24.48 per litre for petrol 95, N$26.26 per litre for diesel 50 parts per million (ppm) and N$26.36 per litre for diesel 10 ppm.
Amutse said the ministry’s review of the fuel pricing model found that international oil markets remained highly volatile, driven by geopolitical tensions, supply constraints, fluctuations in global demand, exchange rate movements and higher freight and demurrage costs.
“The international oil market development remained highly volatile, driven by geopolitical tensions, global supply constraints and fluctuations in global demand,” he said.
During the pricing period from 1 July to 27 July, the average international petrol price rose by 2.87% to US$115 per barrel.
Over the same period, the average price of diesel 50 ppm increased by 10.97%, from US$120 to US$141 per barrel, while diesel 10 ppm rose by 11.10%, from US$127 to US$141 per barrel.
The Namibia dollar also weakened slightly against the US dollar, depreciating from an average of N$16.38 to N$16.42 per US dollar, further increasing the cost of imported fuel.
Amutse said the government had restored the four fuel levies after reducing them by 50% between April and June, with the relief measures subsequently extended through July.
“These levies are essential for financing critical statutory obligations and strategic programmes of various beneficiaries, including the road user charge levy that is used for road infrastructure development,” Amutse said.
He said government intervention through an emergency fuel supply arrangement had significantly reduced the impact of rising import costs on consumers.
Without the intervention, petrol prices at Walvis Bay would have increased to about N$28.48 per litre, while diesel 50 ppm and diesel 10 ppm would have reached N$30.26 and N$30.36 per litre, respectively.
“The emergency fuel supply arrangement has therefore significantly mitigated the impact of the international fuel market on Namibian consumers by eliminating the substantial import premiums that would otherwise have been passed directly to motorists,” Amutse said.
He said the arrangement removed import premiums that had recently fluctuated between approximately 50 cents and N$4.00 per litre, meaning motorists would only bear the cost of the reinstated levies rather than the full increase in import costs.
Amutse also sought to reassure the public that the country has adequate fuel reserves.
“The Ministry reassures the Republic of Namibia that Namibia has sufficient fuel stocks and the national fuel supply system remains stable,” he said.
He added that the ministry would continue monitoring global oil markets while balancing fuel security, consumer protection and the funding of key national infrastructure programmes.
“The Namibian Government remains committed to ensuring security of fuel supply, cushioning consumers where possible, supporting economic stability and minimising disruptions to critical sectors of the economy,” Amutse said
