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Namibia’s Ministry of Industrialisation, Trade, Mines and Energy has confirmed that the country will experience higher fuel prices in December 2025, bringing an end to five consecutive months during which pump prices remained unchanged. This adjustment follows the Ministry’s routine monthly fuel price review; a mechanism Namibia uses to assess international market movements and determine whether domestic price changes are necessary.
According to the Ministry, the upcoming increase occurs even though the Namibia dollar appreciated slightly against the US dollar during the review period. Typically, a stronger local currency helps reduce the cost of fuel imports, since petroleum products are purchased in US dollars. However, in this case, the currency gains were insufficient to offset a significant rise in global oil and refined product prices.
The Ministry explained that the international oil market has been under considerable strain. A combination of geopolitical tensions, restricted production increases within the OPEC+ alliance, refinery outages in key producing regions, and ongoing sanctions targeting Russian crude exports have contributed to tightening global supply. At the same time, demand for fuel has picked up sharply in several major economies—including the United States, China and Nigeria—exerting further upward pressure on prices. This dynamic of reduced supply paired with renewed demand has pushed international oil prices higher in recent months.
As a result of these global shifts, the cost at which Namibia imports fuel rose notably during the evaluation period. Between 1 and 21 November 2025, the average price of Petrol 95 climbed by 4.1%, reaching USD 83.49 per barrel compared to USD 80.24 in October. Diesel prices saw even more pronounced increases: Diesel 50ppm averaged USD 95.98 per barrel, an 8.3% rise from October’s USD 88.65, while Diesel 10ppm also recorded an 8.3% increase, reaching USD 96.31 per barrel.
Although the Namibia dollar strengthened marginally—appreciating 0.2% from an average of N$17.27 per USD in October to N$17.24 during the review period—domestic fuel pricing calculations still showed substantial under-recoveries. These under-recoveries indicate that the government would have had to subsidize fuel costs even at existing pump prices. The Ministry reported under-recoveries amounting to 21.21 cents per litre for Petrol 95, 156.51 cents per litre for Diesel 50ppm, and 150.11 cents per litre for Diesel 10ppm.
To address these deficits and ensure cost recovery within the fuel supply chain, the Ministry has approved an increase of 21 cents per litre for all major fuel categories, effective 3 December 2025. This means that pump prices at Namibia’s main port of entry, Walvis Bay, will adjust to N$20.58 per litre for Petrol 95, N$20.13 per litre for Diesel 50ppm, and N$20.23 per litre for Diesel 10ppm, with proportional changes implemented across the country.
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However, to cushion consumers from the full financial impact—particularly in the diesel category—the Ministry announced that the National Energy Fund (NEF) will cover the remaining diesel under-recoveries. The NEF is expected to absorb approximately N$145.8 million, a measure aimed at stabilizing the market, safeguarding the security of supply, and preventing even sharper price increases for motorists and businesses.
The Ministry emphasized that Namibia’s status as a net importer of petroleum products makes the country highly vulnerable to external market forces. It reiterated its commitment to balancing the need for cost recovery within the fuel distribution system with the imperative of protecting consumers and maintaining an uninterrupted national fuel supply.
