Staff Reporter
THE Ministry of Industries, Mines and Energy has clarified that Namibia’s current Jet A-1 aviation fuel supply constraints are linked to a commercial arrangement between Puma Energy Namibia and Vivo Energy Namibia and are not connected to the government-directed petrol and diesel supply arrangement with Vitol.
The ministry said a consignment of Jet A-1 fuel was quarantined at Walvis Bay after routine quality-control testing identified the need for further verification. The consignment was isolated before it could enter the aviation fuel supply chain, and no off-specification fuel was supplied to aircraft.
According to the ministry, Puma Energy Namibia had made Jet A-1 available to Vivo Energy Namibia under an arrangement in which the product would be replaced in kind. The replacement consignment imported for that purpose was the one that required further quality verification after arriving at Walvis Bay.
The ministry said the quarantine of the consignment resulted in the current supply constraint, with replacement product expected to arrive in Namibia on Saturday.
It described product loan arrangements of this nature as routine commercial practices in the petroleum industry, adding that they are conducted between the companies involved.
“Government is not a party to the arrangement and had no role in it,” the ministry said.
It rejected suggestions that the aviation fuel shortage was caused by the government’s decision to introduce a single-supplier arrangement for petroleum products.
The government-directed fuel supply arrangement with Vitol is a targeted and temporary intervention aimed at securing the continuity and affordability of petrol and diesel supplies under volatile international market conditions.
The ministry stressed that the arrangement applies only to petrol and diesel and does not include Jet A-1 aviation fuel.
“Jet A-1 is a non-controlled petroleum product. Its importation and supply are undertaken through the market by commercial industry participants, acting on their own account and at their own commercial risk,” the ministry said.
It added that any suggestion linking the current Jet A-1 shortage to the government-directed arrangement is incorrect.
The ministry said the cause of the quality deviation remains subject to technical assessment and that it would be premature to attribute responsibility to a particular supplier, commercial arrangement or government policy before those processes are completed.
It said appropriate regulatory action would be taken if any breach of applicable requirements is established.
Meanwhile, the ministry is working with the Namibia Airports Company, fuel suppliers, airlines and other aviation stakeholders to safeguard aviation fuel supplies and minimise disruptions to flight operations.
“Airport operations will continue and the restoration of full passenger and cargo fuelling operations is an immediate priority,” the ministry said.
Passengers have been advised to remain in contact with their airlines regarding possible schedule adjustments.
The ministry said the incident had highlighted the strategic importance of aviation fuel to Namibia’s economy and national infrastructure, including commercial aviation, tourism, business travel and air cargo.
It is therefore considering whether Jet A-1 should in future be brought under an appropriate regulatory and supply-security framework covering quality assurance, contingency stockholding, oversight and security of supply.
The ministry said any such measures would be developed in consultation with the industry.
It also acknowledged concerns surrounding the single-supplier model and said mitigating measures would be implemented once the system is fully operational.
The objective, according to the ministry, is to balance security of supply, affordability, competition, price stability, commercial sustainability and national energy security.
Picture for illustrative purposes only. Photo: Vivo Energy Namibia
