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The Ministry of Mines and Energy in Namibia has announced that fuel prices will remain unchanged for August 2025, despite a rise in international diesel prices. According to the government, exchange rate gains and financial intervention by the National Energy Fund (NEF) helped prevent a fuel price increase.
In a statement released on Monday, the ministry said that petrol will stay at N$20.37 per litre, while diesel 50ppm remains at N$19.92, and diesel 10ppm stays at N$20.02 per litre.
The ministry’s executive director, Moses Pakote, said several economic factors influenced the decision to keep fuel prices stable. He explained that the Namibia dollar (N$) had appreciated slightly against the United States dollar (US$) in July, which helped cushion the impact of rising fuel prices on the global market.
“From 1 to 22 July 2025, the average exchange rate stood at N$17.72 per US$, reflecting a 0.65% appreciation compared to the June 2025 average of N$17.84. This appreciation helped cushion the impact of rising international diesel prices by slightly lowering the cost of imports in local currency terms,” Pakote explained.
He noted that although diesel prices increased by nearly 3% in US dollar terms, the effective rise in Namibia dollar terms was contained to about 2.3%, thanks to the stronger local currency.
This relatively small increase meant that the under-recovery—the difference between what Namibians pay for fuel and what it costs to import—did not reach a level that would force the government to raise pump prices.
Pakote confirmed that the National Energy Fund would cover the estimated N$24.7 million under-recovery for this month.
Under-recovery occurs when the actual selling price of fuel is lower than the amount required to import and deliver the product based on global prices. This difference is typically absorbed by the NEF to protect consumers from sharp price hikes.
Government officials have repeatedly stated that stabilising fuel prices is essential to controlling inflation and reducing the financial burden on households and businesses. Fuel costs have a direct effect on the price of goods and services, particularly in transport and agriculture.
Although international oil markets remain volatile due to ongoing geopolitical tensions and changes in global supply, Namibia has avoided a domestic price increase for now.
Pakote said the ministry will continue monitoring the global oil market, exchange rates, and freight costs to assess whether future changes to local pump prices will be necessary.
He reiterated that the government is committed to shielding consumers from price shocks while also maintaining the sustainability of the national fuel supply system.
Namibia, which imports most of its fuel, is particularly vulnerable to movements in the global crude oil market. The country relies heavily on fuel for transportation, mining, agriculture, and other critical sectors of the economy.
While this month’s relief is welcome news for motorists and transporters, experts caution that continued under-recoveries could pressure government finances if international prices stay high.
Still, the ministry said that any future price adjustments would be made with careful consideration of both global market trends and the domestic economic outlook.
The fuel price decision for August comes amid increased public scrutiny over the cost of living, with many Namibians expressing concern over rising expenses in food, rent, and transport.
As things stand, Namibian drivers will not see any price hike at the pump in August, but analysts warn that the longer-term picture remains uncertain.
