Namibia has opened talks with the Indian government to source cheap fuel from the leading Asian petrol and diesel exporter.
The Brief is reliably informed that Namibia is banking on its good bi-lateral relations with India to secure an alternative source for its fuel requirements.
This comes as the government has over the past few months been frantically looking for an alternative solution to high fuel prices, after the Ministry of Mines and Energy in May implemented fuel levy relief measures for three months to cushion local consumers.
Energy Fund Director in the Energy ministry, Saima Neke, confirmed that the government department was exploring various alternatives to stabilize the country’s spiraling fuel prices.
“Yes, the government is busy exploring various fuel procurement approaches that might assist in stabilizing fuel prices in the country,” she told The Brief.
Officials from the Indian High Commission in Windhoek also confirmed the talks but declined to give specifics regarding the Namibian government request.
Namibia for the period 2021-2022 imported petroleum products worth N$3.5 billion from India.
Namibians are anxiously waiting for the Cabinet to pronounce new measures concerning the extension or removal of fuel price subsidies introduced in May and expected to end on Sunday.
The Energy ministry announced a reduction in petrol prices by N$1.20 for May and diesel prices by 30 cents, while at the same time introducing temporarily reduced levies on all petroleum products, through the reduction of the NAMCOR Levy, road user charges and fuel tax by 50%, while the MVA Levy was reduced by 25%.
Namibia currently sources its fuel on the international market from wholesalers, prices of which are determined by the global prevalent prices at the time. The country’s source markets are Singapore, Qatar, United Arab Emirates, Norway, United Kingdom, Nigeria and Ghana among others.
In the first five months this year, India’s gasoline and diesel exports have jumped more than 16% on year to 150.75 million barrels, according to Indian government data, with the cargo mainly headed to the Asia Pacific, Africa and Europe, according to Kpler, a commodity data and analytics solution company.
Meanwhile, the Mines and Energy ministry is due to announce the August fuel prices this week.
