The Namibian government is expected to pay approximately N$384 million to oil marketing companies in November to cover fuel price under-recoveries recorded in October, placing further pressure on the National Energy Fund (NEF), whose reserves have fallen to N$416 million.
Minister of Industries, Mines and Energy Modestus Amutse said the fund’s equalisation reserves were now significantly below the N$800 million buffer required to cover at least three months of fuel price under-recoveries.
Speaking during a media briefing on Monday, Amutse warned that the NEF could be depleted within a short period if fuel prices were not adjusted, as the government continues to absorb part of the rising cost of imported fuel to cushion consumers against international price increases.
The N$384 million subsidy obligation is equivalent to more than 92% of the fund’s current equalisation reserves, highlighting the financial pressure facing the government’s fuel price support mechanism.
Amutse said the fund had been under severe financial pressure since April and May 2026, with rising international oil prices and fuel import costs increasing the government’s subsidy obligations.
He said the fuel pricing system recorded an over-recovery of approximately N$87.6 million in September before shifting to an estimated under-recovery of N$384 million in October.
“In September, the slate recorded a small over-recovery of about N$87.6 million. In October, however, the estimated under-recovery rose to about N$384 million, which the NEF must pay to the oil companies during November,” Amutse said.
“At the same time, the NEF’s equalisation reserve stands at about N$416 million, which is well below the N$800 million buffer the Ministry set aside to cover at least three months of under-recoveries. The Fund has been carrying a heavy burden since April and May this year, and without a price adjustment it would be at risk of being fully depleted within a short period.”
Meanwhile, the government has secured a fuel supply discount through TotalEnergies Marketing Namibia under the interim Bulk Petroleum Import Coordination process to reduce the country’s fuel import costs.
The arrangement provides a discount of 71 cents per litre on petrol and 61 cents per litre on diesel, generating estimated savings of N$64 million per month.
Amutse said the government would continue pursuing measures to reduce fuel import costs while maintaining the financial sustainability of the NEF.
The minister also assured consumers that Namibia had sufficient fuel stocks despite ongoing disruptions in international oil markets.
“The Ministry once again reassures the public that Namibia has sufficient fuel stocks and that the national fuel supply system remains stable. Consumers are urged not to engage in panic buying,” he said.
The latest figures underline the pressure on the NEF as the government seeks to balance consumer protection against the rising cost of subsidising imported fuel.
