Justicia Shipena
While tensions in the Middle East threaten global oil supply and price stability, Namibia’s fuel security is not under immediate threat.
This is according to Ben Nangombe, executive director of the ministry of industries, mines and energy, who said Namibia can still access petroleum products from alternative markets.
“The Persian or Arab Gulf region is one of the most important sources of refined petroleum products,” Nangombe told the Windhoek Observer.
“However, other equally important markets for refined petroleum products exist elsewhere. The country remains able to source oil products from alternative international markets, although potentially at higher costs.”
Nangombe said the ministry is monitoring developments in the Middle East, especially the escalating conflict involving Iran.
He warned that geopolitical instability could disrupt supply routes, including the Strait of Hormuz, and shut down refineries, which would push global prices higher.
For Namibia, a price-taking country with no refining capacity, this could lead to costlier imports, higher pump prices, and increased inflation.
Last week, oil prices dropped sharply after Iran launched a missile attack on the Al Udeid U.S. military base in Qatar.
The strike followed U.S. airstrikes on Iran’s nuclear facilities but did not affect oil and gas tanker traffic through the Strait of Hormuz.
Brent crude fell by $5.53 to $71.48 per barrel, while U.S. West Texas Intermediate dropped to $68.51.
Despite these events, Namibia’s fuel prices remain unchanged.
On Friday, the ministry announced that July pump prices at Walvis Bay will stay at N$20.37 per litre for Petrol 95, N$19.92 for Diesel 50 ppm, and N$20.02 for Diesel 10 ppm.
Nangombe said Namibia does not rely on fixed long-term supply contracts. Instead, the country has issued wholesale licences to various fuel importers.
These companies can import from a wide range of international sources, which allows for greater flexibility in times of global disruption.
He added that the ministry continues to monitor licensed importers to ensure that the domestic supply remains stable.
Although Namibia imports all its refined fuel and holds limited foreign currency reserves, the current system is designed to adapt quickly to changing conditions.
A recent report by Simonis Storm Securities noted that external shocks, such as oil price increases, contribute to imported inflation and wider trade deficits.
The firm estimates that a 10% rise in Brent crude prices could increase Namibia’s inflation by between 0.8 and 1.2 percentage points, depending on how quickly costs filter through and the stability of the Namibian dollar.
