Namibia will not renew its exclusive fuel supply agreement with Vitol after the government granted a final one-month extension to the contract, running through to October 2026, the Ministry of Industry, Mines and Energy confirmed on Thursday, 10 September.
The extension has been described as an exceptional and terminal measure, with no further renewals envisaged beyond October. The original contract was put in place by the government as an emergency arrangement, initially spanning three months from July to September, to secure supply and shield consumers from fuel price increases linked to the conflict in Iran.
The deal has drawn criticism from opposition parties and rival suppliers, who argue that awarding exclusive supply rights to Vitol — the Dutch multinational energy trading group — heightens the country's dependence on a single source of supply.
The decision also follows an incident last month in which a jet fuel cargo at the port of Walvis Bay was found to be contaminated and withdrawn from circulation by Vivo Energy, a Vitol affiliate. The episode contributed to a fuel shortage that disrupted Lufthansa flights operating out of Windhoek.
Namibia consumes approximately 100 million litres of petrol and diesel per month. The country has also been attracting investment in oil and gas exploration and expects to begin oil production by 2030.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/?p=539224
