Namibia significantly increased its fuel imports from the United States in the second quarter of 2026. The US became the country's second-largest import source, with its share of Namibia's total imports rising to 11.5% from 2.7%. This change was primarily driven by mineral fuels, which accounted for 73.2% of Namibia's imports from the US.
The shift in import sourcing patterns was largely due to disruptions in traditional fuel supply routes caused by the conflict in the Middle East. These disruptions led to a substantial increase in international oil and shipping costs. As a result, Namibia's importers sought alternative sources to meet the country's fuel demands.
Before the disruptions, countries in the Gulf Cooperation Council (GCC) supplied an estimated 40% to 45% of Namibia's mineral fuel imports. However, their share fell to less than 30% during the second quarter. The change created opportunities for other countries to gain ground, with Oman increasing its share of Namibia's imports from 3.7% to 4.2%.
The shift in suppliers resulted in a significant increase in Namibia's overall fuel import bill. Payments for mineral fuel imports rose by 75.3% year on year and 49.2% quarter on quarter to N$9.5 billion during the second quarter. The central bank attributes this increase to higher international fuel prices following supply disruptions.
The global oil market was impacted by the disruptions, with Brent crude rising by 34% year on year and 25% quarter on quarter to an average of US$97 per barrel. The disruptions were particularly significant due to the impact on shipping routes through the Strait of Hormuz, which led to sharp increases in international oil and petroleum product prices, as well as shipping freight costs.
The higher international prices eventually affected fuel prices in Namibia, with petrol reaching N$22.48 per litre and diesel prices ranging from N$24.26 to N$24.36 per litre. To mitigate the impact on consumers, the government used the National Energy Fund's equalisation fund and temporarily reduced the fuel levy component of the pump price.
The fuel shock also had a ripple effect on public transport costs, with the Ministry of Works and Transport approving a 15% increase in taxi and bus fares from 18 May, citing rising fuel and operating costs. The change in Namibia's import sourcing patterns is expected to continue, with the US emerging as a major fuel source for the country.
Key points
- The US became Namibia's second-largest import source, with a 11.5% share of the country's total imports.
- The conflict in the Middle East led to disruptions in traditional fuel supply routes, forcing Namibia to seek alternative sources.
- Namibia's fuel import bill increased by 75.3% year on year to N$9.5 billion during the second quarter.
