Chamwe Kaira
The appreciation of the Namibian dollar against the US dollar helped reduce the impact of rising freight costs.
From 1 to 25 August, the average exchange rate stood at N$17.70 per US dollar, reflecting a 0.34% appreciation compared to the July average of N$17.76.
“This appreciation helped cushion the impact of rising freight costs by slightly lowering the cost of imports in local currency terms, thereby reducing the extent of under-recoveries,” the ministry of industries, mines and energy said.
On Friday, the ministry announced that the prices of petrol and both diesel grades will remain unchanged for September.
Petrol will stay at N$20.37 per litre, diesel 50ppm at N$19.92 per litre, and diesel 10ppm at N$20.02 per litre.
The National Energy Fund will absorb all under-recoveries.
The ministry said it is committed to ensuring fuel price stability while balancing market realities and protecting consumer interests.
“We will continue to monitor developments in global oil prices, freight costs, and exchange rate movements closely, and adjust pricing as necessary to promote a sustainable and reliable fuel supply for Namibia,” the ministry said.
In August, the cost of unleaded petrol and diesel declined as several global factors eased market pressure.
The ministry said increased US oil and gas production under pro-energy policies boosted supply, while the expiration of the August tariff deadline removed extra costs for crude oil trade.
Weaker refinery margins and discounted Russian crude also lowered prices, with Brent crude settling at US$72.53 per barrel and West Texas Intermediate at US$69.26.
The ministry noted that freight and demurrage costs rose, driven by geopolitical tensions between Israel and Iran, which slowed tanker bookings from the Middle East to Asia.
This prompted spikes in freight rates as shipowners secured war risk premiums. Global conflicts and trade uncertainties further tightened the tanker market.
According to the ministry’s calculations, the average price of petrol 95 for the period ending 25 August was US$82.04 per barrel, a 0.13% decrease from the July average of US$82.15.
Diesel 50 ppm averaged US$85.82 per barrel, down 5.23% from US$90.56 in July. Diesel 10ppm followed the same trend, averaging US$85.98 per barrel, a 5.36% decrease from the July average of US$90.85.
