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After holding steady in May, Namibian fuel prices are finally set to drop this June, offering some welcome relief to consumers and the wider industry. The Ministry of Industries, Mines and Energy has announced that petrol will decrease by 30 cents per litre, while both diesel variants, 50ppm and 10ppm, will see a larger reduction of 70 cents per litre.
This decision follows a series of positive shifts in the fuel pricing model. According to the Ministry, its June review recorded significant over-recoveries across the board: 36.467 cents per litre for petrol, 79.608 cents for diesel 50ppm, and 87.383 cents for diesel 10ppm. These over-recoveries essentially represent the difference between what consumers paid at the pump and the actual cost of bringing fuel into the country, with the latter having dropped due to more favourable global market conditions
The May fuel price review, on the other hand, had left prices unchanged. At the time, the global cost of crude oil had decreased due to increased production by OPEC+ and steady output from non-OPEC countries like the United States. However, the advantages of lower oil prices were offset by higher import costs, resulting in only modest over-recoveries that were insufficient to support a price cut. In April, the Namibian dollar had weakened against the US dollar, averaging N$19.03 per USD.
Now, with the exchange rate pressures lessening and global supply circumstances continuing to stabilize, the Ministry has identified solid reasons to cut prices across the board. This is especially excellent news for businesses relying on diesel, such as mining, transport, and agriculture, whose operating costs are tightly connected to fuel bills.
For the mining sector in particular, the June adjustment comes at a vital moment. Lower diesel prices may result in noticeable cost savings when operations pick up in strategic areas of the nation, particularly for outlying locations where logistics account for a sizable portion of operational budgets.
The Ministry reiterated its commitment to monitoring international oil markets and local economic conditions to make timely, evidence-based decisions. The goal remains to strike a fair balance between protecting consumers and ensuring the long-term sustainability of Namibia’s fuel supply chain.
Fuel users across all sectors can expect the new fuel prices to take effect at 00:01 on Wednesday, 5 June 2025.
