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The Ministry of Industries, Mines and Energy has announced that fuel prices across Namibia will remain unchanged for the month of August 2025. This decision follows a comprehensive review of global oil market dynamics, exchange rate fluctuations, and domestic pricing models.
During the month of July, international oil prices were shaped by an oversupplied market and moderate global demand. OPEC+ members, particularly Saudi Arabia, increased oil production, tipping the supply-demand balance and contributing to a slight decline in the cost of Unleaded Petrol (ULP). Conversely, diesel prices experienced a modest increase, primarily due to a tightening in global distillate supply and consistent industrial demand. Despite some relief in shipping costs and vessel availability, these trends had a divergent effect on fuel categories.
According to the Ministry’s assessment, the average international price of Petrol 95 between July 1 and July 25 stood at USD 82.03 per barrel, reflecting a 2.27 percent decrease from June’s average of USD 83.93. On the other hand, Diesel 50ppm averaged USD 90.21 per barrel, a 5.31 percent increase, while Diesel 10ppm rose by 5.23 percent to an average of USD 90.49 per barrel.
Locally, the Namibia Dollar showed a slight appreciation against the US Dollar during the same period. The average exchange rate from July 1 to 22 was N$17.72 per USD, up 0.65 percent from the June average of N$17.84. This currency strengthening helped soften the impact of rising diesel prices, limiting the increase in import costs in local currency terms.
The Ministry’s pricing model recorded an over-recovery of 0.46 cents per litre for ULP95. However, it also registered substantial under-recoveries of 90.62 cents per litre for Diesel 50ppm and 83.86 cents per litre for Diesel 10ppm. Despite these figures, the Ministry has resolved to keep fuel prices steady. Petrol 95 will remain at N$20.37 per litre, Diesel 50ppm at N$19.92 per litre, and Diesel 10ppm at N$20.02 per litre.
The National Energy Fund will absorb the under-recoveries to ensure price stability. Based on fuel volumes consumed in June, the Fund is expected to cover a total under-recovery of approximately N$24.7 million.
The Ministry reaffirmed its commitment to maintaining a balanced approach that safeguards consumer interests while responding to global and local market conditions. Officials will continue to monitor developments closely to ensure a sustainable and reliable fuel supply for the country.
