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Namibia secures fuel without premiums Staff Reporter THE Ministry of Industries, Mines and Energy has moved to dispel what it described as misinformation surrounding government’s emergency fuel supply arrangements with international energy company Vitol, saying the measures were introduced to protect consumers from further fuel price increases and ensure economic stability. In a statement issued on Saturday, Minister of Industries, Mines and Energy, Modestus Amutse, said the arrangement covers the supply of petroleum products from July to September 2026 and was necessitated by rising international fuel costs linked to ongoing geopolitical tensions in the Middle East. According to Amutse, the conflict that erupted on 28 February 2026 significantly disrupted global oil markets, resulting in higher petroleum prices and increased costs for fuel-importing countries such as Namibia. He said government has already committed more than N$1 billion to cushion consumers from the impact of rising fuel prices and maintain stability in the economy. “The welfare of the Namibian people is our first priority, and it is a duty placed on us by our Constitution,” Amutse said. He explained that while Namibia continues to have sufficient fuel supplies, the country faces what he termed an “emergency of cost” rather than an emergency of supply. According to the minister, the National Energy Fund, which previously held substantial reserves, has used much of its surplus to absorb under-recoveries and additional fuel premiums in an effort to prevent even higher pump prices. “Left unaddressed, the combination of higher world prices, the premiums on our fuel, and a National Energy Fund that can no longer absorb them would push pump prices sharply higher from the start of July,” he said. Amutse said the ministry engaged several local and international fuel suppliers, as well as foreign governments through diplomatic channels, in search of more affordable fuel supply options. He added that consultations were also held with the Namibian Oil Industry Association (NOIA), during which government outlined plans to consolidate national fuel requirements to benefit from economies of scale and eliminate premiums charged above the Basic Fuel Price. According to the minister, several proposals were received from both local and international suppliers. However, Vitol’s offer was selected because it met Namibia’s full fuel requirements at the Basic Fuel Price without additional premiums and without requiring public funds. “Other offers carried conditions, such as guarantees or financial assurances,” Amutse said. He further revealed that government is in the final stages of developing Bulk Petroleum Import Coordination Regulations, which will allow the state to coordinate the importation of all petroleum products into Namibia. The planned system, expected to be operational by the end of September 2026, is intended to improve efficiency and reduce fuel costs in the long term. Amutse noted that the reform was supported by industry stakeholders as far back as 2023 and is modelled on a similar system currently used in Tanzania. He said the current Vitol arrangement serves as an interim measure while government finalises the new regulatory framework. Should global oil market conditions remain unfavourable, the ministry indicated that it may invite further suppliers to participate in future fuel procurement initiatives aimed at protecting consumers and maintaining economic stability. Amutse concluded by rejecting claims that the arrangement was improper, saying it was concluded transparently, in the national interest, and without committing public funds. “There is nothing improper in the arrangements the Government has made to secure our fuel supply for the period July to September 2026. They were made transparently, in the national interest and on terms that protect the consumer and commit no public money,” he said. PICTURED: Minister of Industries, Mines and Energy, Modestus Amutse. Photo: NBC Digital News The post Namibia secures fuel without premiums appeared first on Informanté. http://newsfeed.facilit8.network/TSp7K9