The Ministry of Industries, Mines and Energy has kept fuel pump prices unchanged for March 2026, despite rising international oil prices and under-recoveries recorded in the domestic pricing model.
In a review of fuel prices for the period, the Ministry said international shipping and freight costs declined in February 2026, largely due to easing geopolitical tensions along key transit routes and improved vessel availability in the tanker market.
As congestion in major export corridors normalised, the supply of Very Large Crude Carriers increased relative to demand, lowering charter rates. Reduced bunker fuel prices also helped cut voyage costs.
However, crude oil prices rose during the same period, driven by tightening global supply and stronger-than-expected demand from major consuming economies. Production discipline by OPEC and its allies sustained upward price pressure by limiting additional output, while geopolitical uncertainty in key producing regions added a risk premium to prices.
The US dollar remained relatively weak amid expectations of an expansionary monetary policy stance by the Federal Reserve.
According to the Ministry’s calculations, the average price of Petrol 95 for the period 1–23 February 2026 stood at US$78.67 per barrel, a 5% increase from the January average of US$74.92.
Diesel prices rose more sharply. Diesel 50ppm averaged US$88.21 per barrel during the review period, up 9.19% from US$80.79 in January. Diesel 10ppm averaged US$88.37 per barrel, reflecting a 9.30% increase from US$80.85 recorded in the previous month.
The Namibia dollar strengthened against the US dollar during the period under review. From 1 to 23 February 2026, the average exchange rate was N$16.03 per US dollar, representing a 1.68% appreciation compared to the January average of N$16.30. The stronger currency helped offset part of the increase in international oil prices.
Based on the fuel pricing model, an over-recovery of 5.04 cents per litre was recorded for ULP95, while under-recoveries of 40.04 cents per litre for Diesel 50ppm and 89.77 cents per litre for Diesel 10ppm were registered during the period.
The Ministry also confirmed an adjustment to the dealer margin for fuel retailers. Although the margin was increased by 14 cents per litre last month, further consultations with the Fuel and Franchise Association of Namibia identified a residual shortfall of 2 cents per litre.
As a result, the dealer margin will be increased from 236 cents per litre to 238 cents per litre, effective 4 March 2026.
Despite the mixed pricing pressures, the Ministry resolved to maintain current pump prices for March 2026. ULP95 will remain at N$19.58 per litre, Diesel 50ppm at N$19.63 per litre, and Diesel 10ppm at N$19.73 per litre.
The Ministry said it will continue to monitor international oil market developments closely to safeguard domestic price stability.
