Namibian motorists and businesses will face higher fuel costs from 2 September 2026, with diesel prices increasing by N$1.60 per litre and petrol rising by 60 cents per litre, the Ministry of Industries, Mines and Energy announced on Friday.
The increase will push the Walvis Bay pump price of Petrol 95 to N$25.08 per litre, while Diesel 50ppm will rise to N$27.86 per litre and Diesel 10ppm to N$27.96 per litre. Prices elsewhere in the country will be adjusted accordingly.
The new prices will take effect at 00h01 on 2 September.
The ministry attributed the increases largely to a sharp rise in international petroleum product prices during the August review period, which outweighed the benefit of a stronger Namibian Dollar against the US Dollar.
According to the ministry, the average international price of Petrol 95 increased by 5.67% from US$116.803 per barrel in July to US$122.947 per barrel between 1 and 25 August.
Diesel recorded significantly larger increases, with the average price of Diesel 50ppm rising 11.29% from US$145.298 to US$161.708 per barrel, while Diesel 10ppm increased 11.42% from US$145.944 to US$162.606 per barrel.
“The average price of Petrol 95 for the period 1-25 August 2026 was USD 122.947 per barrel, representing an increase of 5.67% from the July 2026 average of USD 116.803 per barrel. The average price of Diesel 50ppm increased by 11.29%, from USD 145.298 per barrel in July 2026 to USD 161.708 per barrel in August 2026,” the ministry said.
The Namibian Dollar strengthened by about 1.61% against the US Dollar during the review period, averaging N$16.1974 per US Dollar compared with N$16.4627 in July.
Despite the stronger currency, the fuel pricing model recorded under-recoveries of 68.032 cents per litre for Petrol 95, 215.321 cents for Diesel 50ppm and 214.502 cents for Diesel 10ppm.
The ministry said geopolitical tensions in the Middle East and disruptions to crude oil flows through the Strait of Hormuz continued to constrain global supply and shipping conditions.
Higher tanker freight rates also added pressure to delivered petroleum costs, as tighter vessel availability, longer voyage distances and increased risk premiums pushed up shipping costs.
The September adjustment also includes a 30-cent-per-litre increase in the Road User Charge Levy from 243 cents to 273 cents per litre.
According to the ministry, the additional levy is required to finance the implementation of national priority feeder road projects.
“The Ministry has resolved to adjust the fuel pump prices, with ULP95 increasing by 60 cents per litre, while Diesel 50ppm and Diesel 10ppm will each increase by 160 cents per litre, including for RFAs adjustment,” the ministry said.
It said Brent crude prices eased towards the end of the review period amid renewed expectations of a possible reopening of the Strait of Hormuz. However, constrained physical oil flows and vessel movements limited the impact of lower crude prices on delivered petroleum costs.
The ministry said it would continue monitoring international oil market developments and their impact on domestic fuel prices.
