The Namibian Ministry of Industries, Mines and Energy (MIME) has announced that fuel prices will remain unchanged throughout August 2025. This decision comes despite contrasting trends in international oil markets and significant underlying cost pressures, particularly for diesel.
The Ministry’s review for August revealed a complex global picture during July 2025. Increased oil production, notably from OPEC+ members like Saudi Arabia, coupled with persistent economic uncertainties dampening demand, led to a decline in the international cost of Unleaded Petrol 95 (ULP95). The average price per barrel dropped by 2.27% to USD 82.03 compared to June.
Conversely, diesel prices rose internationally due to constrained global distillate supplies and steady industrial demand. Diesel 50ppm averaged USD 90.21 per barrel (a 5.31% increase), while Diesel 10ppm averaged USD 90.49 per barrel (a 5.23% increase). Reduced shipping costs, including lower demurrage charges and freight rates, offered some offset, as did easing Middle East tensions and trade progress, but couldn’t reverse the diesel trend.
A key factor mitigating the impact for Namibia was the appreciation of the Namibian Dollar against the US Dollar. The average exchange rate strengthened to N$17.72 per USD in July, a 0.65% improvement from June’s N$17.84. This currency gain lessened the local currency cost of the rising international diesel prices.
The fuel pricing mechanism calculations resulted in an over-recovery of 0.46 cents per litre for ULP95. However, significant under-recoveries were recorded: 90.62 cents per litre for Diesel 50ppm and 83.86 cents per litre for Diesel 10ppm.
Consequently, the Ministry confirmed the following prices will remain in effect for August: Petrol 95 (ULP95): N$20.37 per litre; Diesel 50ppm: N$19.92 per litre and Diesel 10ppm: N$20.02 per litre.
The National Energy Fund will absorb the estimated cumulative under-recovery costs, projected at approximately N$24.7 million based on June 2025 consumption volumes. This intervention effectively shields consumers from price increases this month.
“The Ministry remains committed to ensuring fuel price stability while balancing market realities and protecting consumer interests,” stated Executive Director Moses Pakote in the announcement. He added that MIME will continue to closely monitor international and local market developments and adjust pricing as necessary to promote a sustainable and reliable fuel supply for Namibia.