The Namibian government will temporarily reduce fuel taxes by 50% for at least three months, through the end of June, in an effort to protect consumers from rising prices at the pump as the war between the United States (US), Israel, and Iran continues, Energy Minister Modestus Amutse announced on Friday (27).
The decision by this Southern African nation, which is entirely dependent on imports of refined petroleum products, is the latest response by an African country to the crisis in the Middle East, which has choked off about 20% of global exports of oil and liquefied natural gas that pass through the Strait of Hormuz.
“This measure is necessary due to the high volatility of petroleum product prices resulting from the current geopolitical tensions in the Middle East,” stated Modestus Amutse during a press conference.
The official added that the government will draw on its National Energy Fund to help stabilize fuel price volatility between April 1 and the end of June, with the shortfall recorded in April amounting to approximately $29 million.
At the same time, he indicated that prices at gas stations will increase in April by $0.14 per liter for gasoline and $0.23 per liter for both types of diesel, with the government covering the difference.
“The goal is to mitigate price volatility and ensure the stability of domestic fuel prices,” he stated.
Namibia, a major global hub for oil and gas exploration that expects to produce its first oil by 2030, consumes approximately 100 million liters of gasoline and diesel per month.
Amutse emphasized that the country’s fuel reserves are sufficient to meet domestic demand for one to two months, urging citizens not to hoard fuel illegally or panic-buy.
Source: Reuters
