Namibian motorists will pay significantly less at the pump from Friday after the government announced a N$1.00 per litre cut in the price of Petrol 95 and a N$4.00 per litre reduction across all diesel grades, while introducing an emergency fuel import arrangement aimed at reducing procurement costs and stabilising future prices.
The Ministry of Industries, Mines and Energy said the new prices will take effect at midnight on 3 July 2026, bringing the Walvis Bay pump price of Petrol 95 to N$22.48 per litre, Diesel 50ppm to N$24.26 per litre, and Diesel 10ppm to N$24.36 per litre.
The price reduction follows a sharp decline in international oil prices after geopolitical tensions in the Middle East eased, lower tanker freight rates, improving global fuel supplies and a stronger Namibia dollar, all of which reduced the country’s fuel import costs.
According to the ministry, the average international price of Petrol 95 fell 14.5% during the review period, while Diesel 50ppm and Diesel 10ppm declined by 17.9%. At the same time, the Namibia dollar appreciated by about 0.7% against the US dollar, further lowering import costs.
The ministry said these developments resulted in over-recoveries within the fuel pricing model, creating room for the latest reductions.
Alongside the price cuts, government has introduced an emergency coordinated fuel supply arrangement that will run from July to September 2026. Under the temporary system, Namibia will procure fuel at the Basic Fuel Price without paying the additional import premiums normally charged above the benchmark price.
The ministry said eliminating these premiums is expected to reduce fuel procurement costs, ease pressure on domestic fuel prices and shield consumers from unnecessary price increases.
The move is also expected to strengthen the financial position of the National Energy Fund (NEF), which has been under mounting pressure after absorbing massive fuel price under-recoveries.
According to the ministry, the NEF accumulated fuel price under-recoveries of approximately N$1.3 billion during April and May 2026, excluding import premiums that averaged N$300 million per month.
Government said the emergency arrangement will also provide the transition period needed to implement the Bulk Petroleum Import Coordination (BPIC) System, which is expected to commence after the three-month intervention.
The BPIC system will centralise petroleum procurement to achieve economies of scale, improve operational efficiency, lower overall fuel import costs and increase transparency over the landed cost of fuel.
The ministry said the long-term objective is to build a more efficient, sustainable and competitive petroleum supply chain while ensuring that domestic fuel prices continue to reflect international market conditions without compromising the financial sustainability of the fuel pricing framework.
