Namibia is again drawing on its National Energy Fund (NEF) to shield motorists from rising global fuel costs, highlighting the growing financial burden faced by fuel-importing countries as international oil prices and freight costs remain elevated.
The Ministry of Industries, Mines and Energy said fuel prices will rise by N$2.00 (US$0.11) per litre from 5 August, but the increase would have been significantly higher had the NEF not absorbed diesel under-recoveries and part of the reinstated fuel levy.
The ministry said the intervention, together with an emergency fuel procurement agreement with global trader Vitol, prevented pump prices from increasing by about N$6.00 per litre by eliminating additional import premiums and offsetting part of the higher landed fuel costs.
Namibia imports all of its refined petroleum products, leaving the country exposed to fluctuations in international refined fuel prices, exchange rates and shipping costs.
During the July pricing period, benchmark prices for petrol and diesel increased, while the Namibia dollar weakened against the US dollar, pushing up import costs.
The ministry said the government would continue balancing cost recovery with consumer protection while ensuring adequate fuel supplies remain available across the country.
