Namibians to Face Higher Prices as Fuel Costs Rise. Namibian consumers are set to experience a surge in prices for essential goods following an increase in fuel costs. The Ministry of Mines and Energy announced on Friday that fuel prices will rise starting Wednesday, a move expected to have a ripple effect on transportation, food, and other consumer products.
According to the ministry, global factors are behind the price hike. Supply cuts by oil-producing nations under OPEC+, geopolitical conflicts, and fluctuations in currency exchange rates have made crude oil more expensive to import. Additionally, increased fuel demand in the northern hemisphere due to winter conditions has further strained global supply chains.
The Namibian Dollar’s depreciation against the US Dollar—averaging N$18.75 per US$1—has also contributed to the rising fuel costs, making oil imports more expensive. The ministry reported under-recoveries of 82 cents per litre for petrol, N$1.75 per litre for 50ppm diesel, and N$1.66 per litre for 10ppm diesel.
To ease the financial burden on consumers, the government decided on a partial increase rather than passing on the full cost. As a result, petrol prices will rise by 42 cents per litre, while diesel prices will increase by N$1.20 per litre.
With these adjustments, fuel prices at Walvis Bay will be set at N$20.67 per litre for petrol, N$20.92 per litre for 50ppm diesel, and N$21.02 per litre for 10ppm diesel. Prices in other regions will be adjusted based on transportation costs.
To cushion consumers from the full impact of the increase, the National Energy Fund will cover the remaining costs of under-recoveries.