Suppliers hoard fuel for profits …as panic buying grips fuel stations nationwide 

Allexer Namundjembo

Minister of Industries, Mines and Energy Modestus Amutse has ordered fuel wholesalers to stop withholding supply and to account for any delays in deliveries. 

The directive comes after fuel stations experienced long queues and shortages hours before prices went up.

Amutse said the ministry launched an investigation after reports of delayed deliveries.

Amuste also directed retailers to serve customers without discrimination and not to limit fuel sales to benefit from price increases.

He warned that withholding fuel to sell later at higher prices undermines supply and must stop.

Wholesalers must now provide written explanations for any reduced supply or failure to deliver, supported by proof of stock and logistics. 

The ministry said any evidence of artificial shortages could lead to action.

Earlier, Fuel and Franchise Association of Namibia (FAFA) raised concern about reduced or withheld deliveries.

FAFA chairperson Michael Ludeke said some wholesalers delayed deliveries despite retailers placing orders and making payments.

The letter addressed to Amuste warned that this could lead to shortages.

“This is clear evidence that supply exists, but is being deliberately withheld so that wholesalers can sell the same stock at the higher price,” the letter reads.

Ludeke said the situation could affect essential services and economic activity.

“Withholding and rationing supply in this manner will cause service stations to run dry and will likely leave towns and cities without fuel, affecting emergency services, public transport, business continuity, and national economic activity,” he said.

He called for immediate action to ensure deliveries continue and to prevent manipulation of supply.

“I must thank FAFA for reaching out when it observed delays by some wholesalers in delivering consignments to their clients, allegedly waiting for tomorrow to deliver at the new increased prices,” Amutse said.

He described the conduct by wholesalers as irresponsible.

“I take my hat off to the wholesalers who have shown commitment to their obligations,” he added.

As the price increase approached, motorists rushed to fuel stations across the country, pushing demand above normal levels.

Some stations in Windhoek and northern towns ran out of petrol and diesel by Tuesday afternoon. Fuel shortages were also reported in Walvis Bay.

Economist John Steytler previously said the increase will have a wide impact on low-income households and warned that sectors such as agriculture, tourism and logistics will also be affected.

Meanwhile, the Namibia Bus and Taxi Association (Nabta) said it is considering increasing fares from N$13 to N$15. 

Nabta chairperson Pendabala Nakathingo said the adjustment is long overdue.

However, the Ministry of Works and Transport pushed back and said the association is not formally recognised and has not met registration requirements.

Fuel prices increased today. Petrol in Walvis Bay now costs N$22.08 per litre, while diesel exceeds N$23 per litre.

The increase follows a rise in global oil prices linked to tensions in the Middle East involving the United States, Israel and Iran. 

Namibia consumes about 1.1 billion litres of fuel each year and relies fully on imports.

To reduce the impact, Cabinet approved a 50% cut in fuel levies from April to June 2026. 

The government will also absorb about N$500 million through the National Energy Fund.

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