Staff Writer
Namibia’s transport prices fell in March 2026, but this trend is expected to reverse after a fuel price increase in April.
The transport category, which makes up 14.3% of the consumer price index, recorded a decline of 1.7% year-on-year in March. This is compared to a 2.6% increase in March last year.
Simonis Storm Securities said the decline reduced overall inflation by 0.3 percentage points.
The drop was driven by lower costs in operating personal transport. These costs fell by 3.3% year-on-year.
Fuel prices remained unchanged in March at N$19.58 per litre for petrol and N$19.63 for diesel in Walvis Bay.
The fuel component of the index declined by 7.7% year-on-year, compared to a 5.6% drop in February.
Other transport costs increased at a slower pace. Vehicle prices rose by 1.4%, down from 3.2%. Public transport inflation slowed to 0.4% from 1.4%. Air transport inflation dropped from 19.0% to 5.7%.
Simonis Storm said March is likely the last month of fuel-driven deflation.
On 1 April 2026, fuel prices increased. Petrol rose by N$2.50 per litre and diesel by N$4.00 per litre.
The government introduced a temporary 50% cut in fuel levies from April to June to reduce the impact on consumers. Despite this, the increase remains one of the largest single-month hikes.
The rise follows an increase in global oil prices linked to geopolitical tensions involving the United States, Israel and Iran.
Supply disruptions through the Strait of Hormuz pushed Brent crude oil prices from about US$71 per barrel in late February to above US$118 by the end of March. Prices rose above US$140 in early April before easing.
“As a result, transport inflation is projected to shift from deflation into positive territory in April. Estimates indicate that the fuel component could rise from -7.7% year-on-year to between 5% and 8%, contributing approximately 0.5 to 0.8 percentage points to headline inflation. This would effectively reverse the disinflationary support that the transport sector has provided since late 2025,” Simonis Storm said.
