National Energy Fund nearly depleted after N$1.3 billion fuel bailout

Minister of industry, mines and energy Modestus Amutse stated that the government intervened to keep fuel prices lower than market rates, with N$805 million paid to suppliers in April and N$490 million in May. This heavy spending began in April due to increased international fuel costs. The Fuel and Franchise Association of Namibia Fafa questioned whether the government's temporary fuel supply arrangement with Vitol, a global oil company, would help rebuild the fund.

Amutse explained that the government cushioned the impact to ensure the public could afford petroleum products. He also noted that fuel wholesalers charged import premiums, which added to expenditures, and that removing these premiums, averaging N$300 million per month, would save money. The government has introduced a temporary three-month fuel supply arrangement with Vitol, from June to September, while it prepares a permanent bulk petroleum import coordination system.

This new system will allow fuel wholesalers to jointly buy fuel through an agreed-upon process. Amutse announced that motorists will pay less at the pump starting tomorrow, with petrol decreasing by N$1 per litre, and diesel 50ppm and diesel 10ppm both falling by N$4 per litre. New Walvis Bay pump prices will be N$22.48 per litre for petrol 95, N$24.26 for