Windhoek: Namibia's fuel prices are set to rise sharply from September, with diesel increasing by N$1.60 per litre and petrol by 60 cents as international costs remain under pressure. The Ministry of Industries, Mines and Energy announced in a statement on Friday that the new prices will take effect at midnight on 02 September 2026. Petrol 95 will increase to N$25.08 per litre at Walvis Bay, while Diesel 50ppm and Diesel 10ppm will rise to N$27.86 and N$27.96 respectively.
According to Namibia Press Agency, the increases come despite a stronger Namibia Dollar during the review period, which averaged N$16.1974 against the US Dollar between 01 and 25 August, marking an appreciation of about 1.61% from July's average of N$16.4627. The ministry attributed the adjustment mainly to elevated international petroleum product prices and shipping costs, amid geopolitical tensions in the Middle East and disruptions to crude oil flows through the Strait of Hormuz.
The statement also highlighted that tanker freight rates remained 'exceptionally elevated' as vessel availability tightened, voyage distances increased, and shipowners demanded higher risk premiums for operations in affected areas. Average Petrol 95 prices increased by 5.67% to USD122.947 per barrel during the review period, up from USD116.803 in July. Diesel 50ppm rose by 11.29% to USD161.708 per barrel, while Diesel 10ppm increased by 11.42% to USD162.606 per barrel.
According to the ministry, the higher international prices resulted in under-recoveries of 68.032 cents per litre for Petrol 95, 215.321 cents for Diesel 50ppm, and 214.502 cents for Diesel 10ppm. An under-recovery occurs when the regulated pump price does not fully cover the costs of importing and supplying fuel, placing pressure on the pricing mechanism.
In addition to the price hikes, the ministry will also increase the Road User Charge Levy by 30 cents per litre, from 243 cents to 273 cents, to finance national priority feeder road projects. The revised pump prices at Walvis Bay will therefore be N$25.08 per litre for Petrol 95, N$27.86 per litre for Diesel 50ppm, and N$27.96 per litre for Diesel 10ppm. Pump prices across the rest of the country will be adjusted accordingly.
The ministry said it remains committed to monitoring international oil markets and ensuring that the fuel pricing mechanism supports 'stability and sustainability in the domestic fuel market.'