Namibia Cuts Fuel Levies by 50% to Shield Consumers from Middle East Oil Shock

Namibia has moved to cushion motorists and businesses from rising fuel costs by slashing fuel levies by 50% for at least three months, as global oil markets remain under pressure from escalating tensions in the Middle East.

The temporary relief measure, announced by Energy Minister Modestus Amutse on Friday, will run from 1 April until the end of June. It comes as disruptions linked to the ongoing US-Israeli conflict with Iran continue to rattle global supply chains, particularly around the critical Strait of Hormuz.

Roughly 20% of the world’s oil and liquefied natural gas passes through this strategic corridor, making it highly sensitive to geopolitical instability. Any disruption there quickly filters through to pump prices worldwide, hitting import-dependent countries like Namibia the hardest.

“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.

Like South Africa, Namibia also relies entirely on imported refined fuel, making it vulnerable to international price swings. To manage the impact, government will tap into its National Energy Fund to stabilise prices. April alone is expected to carry an under-recovery of about N$500 million, roughly $29 million.

“The objective is to smooth price volatility and ensure stability in domestic fuel prices,” Amutse added.

The country consumes around 100 million litres of petrol and diesel every month, underscoring the scale of the challenge.

Authorities have also reassured the public that fuel supply remains stable, with stock levels sufficient to meet national demand for at least one to two months. Motorists have been urged not to panic buy or engage in illegal hoarding.

For the trucking and logistics sector, the levy cut offers short-term breathing room, but the situation remains volatile. If tensions in the Middle East drag on, operators across Southern Africa could still feel the pinch in the months ahead.