The Namibian government has awarded TotalEnergies a contract to be the sole supplier of petroleum and diesel to the country for three months, from November 2026 to January 2027. The company will import 345.3 million litres of fuel during this period. This development was announced by Minister of Industries, Mines and Energy Modestus Amutse on Monday evening. The contract was secured through a competitive bidding process.
TotalEnergies' bid offered a discount of 61 cents per litre on diesel and 71 cents per litre on petrol. According to Minister Amutse, this discount translates to a saving of approximately N$220.5 million over the three months compared to the current arrangement. The previous supplier, Vitol, was selected in May due to its offer to supply fuel without premiums. In contrast, the current arrangement goes a step further by having all four bidding companies offer to supply fuel at a discount to the basic fuel price.
The competitive bidding process considered several factors, including price, qualification of the bidder, risk to the country's fuel supply, and the track record of each supplier. TotalEnergies was selected as the importer, with its trading arm Totsa supplying the fuel. Minister Amutse attributed the successful outcome to competition among the bidding groups, emphasising that the ministry will continue to use open competition to procure fuel on the best possible terms.
The National Energy Fund is expected to benefit from these savings, which will enable it to stabilise fuel prices for consumers. Prior to May, the government paid supplier premiums on each litre of fuel. However, in the last supply round, the ministry removed that premium entirely, and fuel was supplied at the basic fuel price. The current discount offered by TotalEnergies is expected to have a positive impact on the country's fuel supply.
Minister Amutse highlighted that all four companies that submitted bids offered to supply fuel at a discount to the basic fuel price. This development indicates a significant shift in the procurement process, with the ministry prioritising cost savings. The contract awarded to TotalEnergies demonstrates the government's commitment to securing fuel supplies at competitive prices.
The 345.3 million litres of fuel to be imported by TotalEnergies will cater to Namibia's needs for three months. The company's trading arm, Totsa, will be responsible for supplying the fuel. The contract is a significant development in Namibia's fuel supply chain, and its impact will be closely monitored by stakeholders.
The Namibian government's decision to award the contract to TotalEnergies reflects its efforts to ensure a stable fuel supply. The competitive bidding process has yielded significant cost savings, which will be passed on to consumers. The National Energy Fund's role in stabilising fuel prices will be crucial in the coming months.
Key points
- TotalEnergies will save the Namibian government N$220.5 million through its discounted fuel supply offer.
- The company will import 345.3 million litres of fuel to Namibia from November 2026 to January 2027.
- The contract was secured through a competitive bidding process that considered price, qualification, risk, and track record of each supplier.
