Govt to remove fuel premium to lower costs for consumers

Allexer Namundjembo

The ministry of industries, mines and energy has announced plans to remove the fuel premium currently paid by consumers, saying the move will help lower fuel costs while ensuring a stable supply of petroleum products in Namibia.

In a ministerial statement delivered on 10 June, minister Modestus Amutse said the premium, which has been charged over and above the Basic Fuel Price for the past four years, was introduced because fuel wholesalers argued they could not secure fuel at the regulated price due to the country’s relatively small import volumes.

Amutse said the Basic Fuel Price already includes transportation costs and a profit margin, making the additional premium an extra burden on consumers.

To address the issue, the ministry indicated that the government is implementing a Bulk Petroleum Import Coordination System, which will allow wholesalers to coordinate fuel imports and benefit from economies of scale.

“The initiative forms part of broader efforts to secure more affordable fuel supplies through partnerships with local and international suppliers,” Amutse said.