Staff Reporter
THE Minister of Industries, Mines and Energy, Modestus Amutse, has explained the fuel overhaul and the approach to regulating Namibia’s fuel import system, stating that ongoing reforms aim to eliminate additional “premium” charges paid by consumers and reduce fuel costs through a coordinated import framework.
Amutse made the remarks in the National Assembly today during the Third Session of the Eighth Parliament, where he sought to clarify public concerns about the structure of the country’s fuel supply chain and the role of international suppliers.
He explained that the fuel industry operates through a distinction between international suppliers, wholesalers and retailers, with wholesalers responsible for importing fuel into Namibia and distributing it to service stations, while international suppliers operate outside the country and are not required to hold Namibian licences.
According to the minister, companies such as Vitol have long supplied a significant share of Namibia’s fuel market through licensed local wholesalers, and continue to do so under existing arrangements.
Amutse further clarified that the so-called “premium” paid on fuel refers to an additional charge above the basic fuel price, which already reflects international market rates plus transport and profit margins.
He said the premiums arose from wholesalers citing challenges in securing fuel at basic prices and concerns about supply security, but argued that these additional costs have placed a burden on consumers.
The minister said government, together with industry stakeholders, agreed as far back as 2023 to move towards coordinated bulk purchasing through a structured import system aimed at improving efficiency and lowering costs.
He said government is now implementing a bulk petroleum import coordination system that will allow wholesalers to order fuel in a coordinated manner, thereby securing better pricing and removing premiums.
Amutse added that government has engaged various international suppliers and that competitive offers have been received, including proposals that do not require government guarantees and exclude premium charges.
He said the reform process is expected to result in lower fuel costs for wholesalers, retailers and ultimately consumers at the pump.
While acknowledging concerns from industry players, the minister maintained that coordinated importation is necessary to stabilise supply and address rising international oil prices and pressure on Namibia’s energy fund.
He stressed that government intervention is aimed at ensuring affordability and preventing potential supply disruptions, while maintaining a competitive and regulated market.
“The removal of the premium that Namibians are currently paying for fuel is necessary, and government is facilitating a system to make this possible,” Amutse said.
He added that wholesalers have so far been unable to independently eliminate the additional charges, necessitating state involvement in the restructuring process.
Photo: NBC Digital News
