The Ministry of Industries, Mines and Energy says there is nothing improper in the arrangements the government made to secure Namibia's fuel supply for the period from July to September 2026, in light of the conflict in the Middle East.

Minister Modestus Amutse clarified that the arrangements were made transparently, in the national interest, and on terms that protect the consumer and do not commit public money.

Amutse provided clarifications following what he described as misinformation circulating about the arrangements to protect consumers from a sharp rise in fuel prices in the months ahead in the supply of petroleum products.

Over the past four years, premiums have been and continue to be charged on top of the basic fuel price. Removing that burden, for good, is exactly what these arrangements, and the reform behind them, are meant to achieve, Amutse said.

He also wanted to be clear about the nature of the emergency they face. It is not an emergency of supply. The fuel is available, and it will remain available. It is an emergency of cost.

Left unaddressed, the combination of higher world prices, the premiums on the fuel, and a National Energy Fund that can no longer absorb them would push pump prices sharply higher from the start of July. Every household would feel the increase in transport, food, and basic goods, but the most vulnerable would feel it the most.

"It is through that lens that the government's proactive approach must be understood as a legitimate effort by the state to protect the interests and welfare of our people," Amutse said.

On the arrangements themselves, he stated that as the situation developed, the ministry began engaging sister countries through their high commissions and embassies in Windhoek and through special representatives, as well as local and international oil companies, to secure affordable fuel free of the additional premiums.

The local industry was consulted on several occasions through the Namibian Oil Industry Association, where the ministry set out its intention to consolidate Namibia's national fuel requirement, to capture the benefits of economies of scale and most importantly, to remove the premiums charged on top of the basic fuel price.

"Ultimately, the objective is and will remain to protect economic stability and the welfare of our people," he said.