Namibia Cuts Fuel Taxes By 50 Percent To Protect Consumers From Higher Pump Prices
Namibia has cut fuel taxes by 50 percent to protect consumers from higher pump prices, after the government announced a three-month fuel levy reduction to cushion motorists from rising global oil costs.
The temporary measure, announced on Friday, 27 March 2026, will run from 1 April 2026 to the end of June 2026. The decision comes as global oil prices continue rising due to geopolitical tensions in the Middle East.
According to Reuters, Namibia’s Minister of Industries, Mines and Energy, Modestus Amutse, said the intervention was necessary to stabilise domestic fuel prices.
“This measure is necessitated due to the high price volatility of petroleum products, which resulted from the ongoing geopolitical tensions in the Middle East,” Amutse said during a media briefing on Friday, 27 March 2026.
He said Namibia will draw from the National Energy Fund to cushion motorists and businesses.
“The objective is to smooth price volatility and ensure stability in domestic fuel prices,” Amutse added.
The move makes Namibia one of the few countries in the region to reduce fuel-related taxes while global prices rise.
Fuel Prices Still Going Up From 1 April
Despite the tax cut, Namibia confirmed fuel price increases effective 1 April 2026.
NBC Digital News reported on 27 March 2026 that petrol will increase by N$2.50 (approximately US$0.14, about R2.59) per litre, while diesel will rise by N$4.00 (approximately US$0.22, about R4.15) per litre.
The new pump prices at Walvis Bay will be:
- Petrol 95: N$22.08 (approximately US$1.20, about R22.89) per litre
- Diesel 50ppm: N$23.63 (approximately US$1.29, about R24.49) per litre
- Diesel 10ppm: N$23.73 (approximately US$1.29, about R24.60) per litre
Pump prices across Namibia will be adjusted accordingly.
Amutse explained that the government reduced fuel levies to cushion consumers.
“Cabinet has resolved to reduce fuel levies by 50% for three months to mitigate the impact on consumers,” he said.
The minister also warned against panic buying and unsafe fuel storage.
“The country has sufficient resources to sustain supply for another two months,” Amutse said.
“Namibians are advised against bulk storing fuel in unsafe conditions, as this could pose significant risks,” he added.
Authorities also warned against illegal fuel resale.
“Only authorised parties are permitted to resell fuel,” Amutse cautioned.
Zimbabwe Motorists Paying One Of The Highest Fuel Prices In Region
Namibia’s move comes as Zimbabwean motorists continue paying some of the highest fuel prices in Southern Africa.
Petrol in Zimbabwe is now US$2.17 (approximately R40.15) per litre, making it one of the most expensive in the region.
By comparison, Namibia’s petrol price of approximately US$1.20 (about R22.89) per litre is nearly half of Zimbabwe’s fuel price.
Zimbabwe’s fuel price includes approximately 85.7 cents in taxes per litre, a 65 per cent increase from the previous 52 cents earlier in the month.
Namibia, on the other hand, has opted to reduce taxes to cushion consumers.
Reuters also reported that Namibia consumes approximately 100 million litres of petrol and diesel each month and remains dependent on imports.
Despite global uncertainty, the Namibian government reassured motorists.
“Fuel stocks are adequate to meet national demand for one to two months,” Amutse said.
Namibia hopes to begin producing its first oil by 2030, but until then, the country remains vulnerable to global price shocks.
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