Namibia has recorded its second fuel price increase this year, with the latest hike set to take effect on Wednesday, 5 March 2025.
The Ministry of Mines and Energy announced that petrol prices will increase by 50 cents per litre, while diesel 50ppm and diesel 10ppm will rise by N$1.20 per litre.
Following the adjustment, fuel prices in Walvis Bay will be N$21.17 per litre for petrol, N$21.42 per litre for diesel 50ppm, and N$21.52 per litre for diesel 10ppm. Prices in other regions will be adjusted accordingly.
This follows a previous fuel price hike in February, meaning that since January 2025, petrol prices have increased by a total of 92 cents per litre, while diesel 50ppm and diesel 10ppm have risen by N$2.40 per litre.
The hike comes despite a recent drop in global oil prices. The ministry noted that in February 2025, oil prices declined due to a combination of rising supply from non-OPEC countries, particularly the United States, and weakening global demand. To counter falling prices, OPEC+ nations opted to maintain production cuts over the medium term.
The Namibia Dollar according to the Ministry, strengthened slightly in February, averaging N$18.49 per US dollar, appreciating by 1.25% from January. The stronger exchange rate marginally reduced the cost of oil imports.
Despite these factors, the ministry’s fuel pricing model recorded an under-recovery of 17.54 cents per litre for petrol, while diesel 50ppm and diesel 10ppm showed over-recoveries of 4.13 cents and 13.18 cents per litre, respectively.
The Ministry said the National Energy Fund (NEF) will absorb the remaining under-recoveries to cushion consumers.
“The Ministry will continue to monitor the developments in the international oil markets to ensure that fuel pricing remains aligned with the broader socio-economic goals and continues to reflect the dynamics of both domestic and global markets,” the government department said.
