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Namibia Fuel Fund Drops to N$200-300 Million After N$1.3 Billion Spent
The National Energy Fund balance fell sharply after two months of government payments to suppliers. Officials said the spending kept pump prices unchanged despite higher international costs.
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The National Energy Fund now holds between N$200 million and N$300 million after the government spent N$1.3 billion over two months to limit increases in fuel prices. Payments began in April when international fuel costs rose. Officials disbursed N$805 million in April and N$490 million in May, allowing prices at the pump to remain steady through May.
Background on the spending The higher outlays stemmed from import premiums charged by wholesalers on top of the basic fuel price. Officials said removing those premiums, averaging N$300 million per month, would lower procurement costs and help replenish the fund.
Temporary supply arrangement A three-month fuel supply deal with Vitol began in June and runs through September. Officials said the arrangement gives time to design a permanent system under which wholesalers will jointly purchase fuel. The Fuel and Franchise Association of Namibia said the temporary deal should help rebuild the fund rather than add pressure.
Officials said the arrangement was not linked to any prior supply model and that consultations on the new system are continuing.
