The price of petrol and diesel is expected to increase by 50 cents per litre as of this month.
The new price adjustments to fuel in the country will come into effect as of Wednesday, the 5th of March.
The increase of 50 cents per litre for both petrol and diesel will result in new prices in Walvis Bay, with a litre of petrol now costing N$21.17, while diesel 50ppm will increase to N$21.42 per litre and N$21.52 for diesel 10ppm per litre.
The rest of Namibia is expected to adjust to the new prices accordingly.
In a statement, the Ministry of Mines and Energy explained that its decision underscores the need to adjust fuel prices in response to the new minimum wage for petrol attendants, which came into effect on 1st January 2025, and to meet the funding needs for the maintenance of the country's roads.
It says that the road user charge levy, which will be increased by 20 cents per litre, brings the Road Fund Administration levy to N$2.34 per litre to create a balance between protecting the consumer and supporting the much-needed maintenance and preservation of the national road networks.
"The new national minimum wage for the fuel retail services sector more than doubled from N$7.20 per hour. This increase could not be fully absorbed by the industry without affecting jobs and business sustainability, given the prevailing thin dealer margins in the sector. At the same time, the 50-cent-per-litre levy request for the maintenance of the national roads remains not fully met due to adverse fuel price developments during the year. At the end, the ministry has resolved to increase dealers' margin for fuel retail operators or service stations by 30 cents per litre," said Anna Salkeus, the ministry's spokesperson.
On a global scale, the ministry observes that the output of the fuel pricing model recorded an under-recovery of N$17.54 per litre of petrol, an over-recovery of N$4.13 per litre for 50ppm diesel, and an over-recovery of N$13.18 per litre for diesel.
"The ministry's recent calculations show that in Feb 2025, the average price of petrol 95 was USD 87.32 per barrel, indicating a 0.09% decrease compared to the previous month. The average price of diesel 50ppm was USD 91.42 per barrel, indicating a 3.02% decrease, and diesel 10ppm was USD 91.50 per barrel, indicating a 3.08% decrease compared to January 2025."
The ministry assured motorists that it will continue to monitor the developments in the international oil markets to ensure that fuel pricing remains aligned with broader socio-economic goals and continues to reflect the dynamics of both domestic and global markets.