Namibia’s government will temporarily cut fuel levies by 50% for at least three months, until the end of June, to protect consumers from rising pump prices as the ongoing U.S.-Israeli conflict with Iran affects global oil markets, the country’s energy minister said on Friday, according to Reuters.
The southern African nation, which relies entirely on imports of refined petroleum products, is responding to the Middle East crisis that has disrupted roughly 20% of the world’s oil and liquefied natural gas exports passing through the Strait of Hormuz.
“This measure is necessitated due to the high price volatility of petroleum products, which resulted from the ongoing geopolitical tensions in the Middle East,” said Modestus Amutse, Namibia’s energy minister, during a media briefing.
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Amutse explained that the government will use its National Energy Fund to stabilize fuel price swings from April 1 through the end of June. The under-recovery for April alone is projected to reach about 500 million Namibian dollars ($29 million).
At the briefing, he also outlined fuel pump price increases for April, which will rise by N$2.50 per litre for petrol and N$4.00 per litre for both diesel grades, with the government covering the under-recovery. “The objective is to smooth price volatility and ensure stability in domestic fuel prices,” Amutse said.
Namibia, a growing global hub for oil and gas exploration that hopes to produce its first oil by 2030, consumes roughly 100 million litres of petrol and diesel each month.
The energy minister assured citizens that the country’s fuel stocks are sufficient to meet national demand for one to two months and urged the public not to hoard fuel illegally or engage in panic buying.
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Image Credit: Vivi Energy Holding B.V.
