The National Petroleum Corporation of Namibia (NAMCOR) considers the current fuel procurement arrangement to be commercially beneficial and aligned with its national objectives.
In a media release, NAMCOR provided clarity on its position regarding recent public commentary concerning the company's participation in the current fuel procurement arrangement.
NAMCOR noted that in recent months it has procured fuel under challenging market conditions at costs exceeding the Basic Fuel Price (BFP), in some instances at up to 75% per litre, and continues to rely on parent company guarantees to support product procurement.
Therefore, the current arrangement provides access to more competitive pricing and reduces procurement and logistics risks.
"Participation in fuel procurement activities must be commercially sustainable and supported by prudent decision-making, effective risk management and sound governance. The current arrangement allows NAMCOR to secure fuel supply on favourable commercial terms while continuing to strengthen its financial and operational position," says NAMCOR spokesperson Utaara Hoveka.
Hoveka believes a coordinated fuel procurement arrangement provides an appropriate balance between affordability, security of supply and commercial sustainability.
He cited that NAMCOR is still in the process of restoring its financial and operational strength following a period of significant commercial and governance challenges experienced in recent years.
"In response to these challenges, the Government of the Republic of Namibia intervened on two occasions to safeguard national energy security and stabilise the company. The first intervention took place in April 2024, through a N$1.2 billion support package backed by the National Energy Fund. A further intervention of approximately N$700 million was secured during July/August 2025 to assist the company in addressing critical supplier obligations, of which N$401 million constituted a government contribution through the National Energy Fund, while the remaining amount was funded from NAMCOR's own resources."
These interventions reduced the capital deficit significantly from about N$2.38 billion in March 2024 to approximately N$483 million as at 31 March 2026.