Justicia Shipena
Namibia’s fuel supply remains stable for the next few months despite rising global oil prices linked to tensions in the Middle East, industries, mines and energy minister Modestus Amutse told parliament on Tuesday.
He responded to an urgent oral question from the South West Africa National Union (Swanu) president and member of parliament Evilastus Kaaronda, who asked how prepared the country is for a possible fuel price increase after crude oil prices surged.
This follows as brent crude oil prices rose sharply by 10% to around US$80 per barrel on Sunday.
Analysts say prices could increase even further after recent US and Israeli strikes on Iran raised tensions in the Middle East.
More than 20% of the world’s oil passes through the Strait of Hormuz, a key shipping route.
Tanker traffic in the area has slowed following warnings from Iran, raising concerns about possible supply disruptions.
“For now, the security of oil for the next two or three months is not a serious concern yet for Namibia,” Amutse said.
Amutse said the government is monitoring the situation before deciding on any fuel price adjustment.
“We have not yet come to the position of making a determination as to whether we must increase the oil price at the pump or whether we should still wait until we see how things unfold,” he said.
He said Namibia sources fuel from the Middle East, India and the European Union, which provides supply flexibility.
According to Namibia Statistics Agency trade data, Namibia imported petroleum oils valued at N$1.5 billion in December. This was N$778 million lower than the previous month, with most imports coming from the United Arab Emirates (UAE).
“For now we will continue with the price that we have, which we determined last Friday, and make announcements there too until we make other determinations on the basis of the condition in the Middle East,” he said.
He added that future price decisions will depend on how the geopolitical situation develops.
“It will be informed by the continuity of the situation. It will be informed by the availability of the oil itself within the Republic of Namibia and those that are in stock and those that are on the road coming to Namibia to fill the gap as we continue to consume,” he said.
“Yes, it is a concern for everyone in the world, including Namibia, and we will continue to inform the people of Namibia as to where we are,” Amutse added.
Last week, the ministry announced that fuel prices will remain unchanged for March. In Walvis Bay, ULP95 petrol remains at N$19.58 per litre, diesel 50ppm (parts per million) at N$19.63 per litre, and diesel 10ppm at N$19.73 per litre.
The latest fuel price review recorded an overrecovery of 5.04 cents per litre for petrol and underrecoveries of 40.04 cents for diesel (50 ppm) and 89.77 cents for diesel (10 ppm). The dealer margin increased by 2 cents per litre to 238 cents per litre.
At the time, the ministry said international shipping costs declined in February due to improved tanker availability, while crude prices rose because of tightening global supply and strong demand.
