Namibia Set To Save N$220.5 Million From New Fuel Supply Deal
Namibia is expected to save about N$220.5 million over the next three months following the award of a new bulk fuel supply contract.
The Ministry of Industries, Mines and Energy (MIME) has selected the TotalEnergies bidding group for the supply period covering November 2026 to January 2027, with TotalEnergies’ trading arm, TOTSA, responsible for supplying the fuel.
The agreement will cover approximately 246.9 million litres of diesel and 98.4 million litres of petrol, with the first shipment expected to arrive in November.
According to the ministry, TOTSA offered a discount of 61 cents per litre against the Basic Fuel Price (BFP) for diesel, while its petrol offer was 71 cents per litre below the BFP.
MIME said all four companies or bidding groups that participated in the process submitted offers below the BFP. This marks a change from previous supply arrangements, where bids had included premiums above the benchmark price.
The projected N$220.5 million saving is expected to benefit the National Energy Fund’s fuel price account. The additional funds could help the government manage pressure on domestic pump prices while maintaining the country’s fuel supply.
Deliveries under the new arrangement are scheduled to continue through January 2027, with the government aiming to maintain a stable and secure supply of fuel during the period.
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