By Staff Reporter
WINDHOEK, June 6,Namibia’s fuel retail sector is facing growing uncertainty as service station owners supplied by Nasan Energies warn that the company’s reported requirement for upfront fuel payments is placing severe financial pressure on dealers, threatening jobs, business sustainability and fuel security across the country.
The concerns emerge amid reports that several Nasan-branded service stations have already experienced fuel shortages, while many retailers are struggling to maintain operations under increasingly challenging trading conditions.
Industry sources say the requirement for retailers to pay for fuel in advance has fundamentally altered the operating environment for many service station operators, particularly those who previously relied on established credit facilities and payment terms to manage cash flow.
According to several service station owners, the situation has become so severe that some dealers are considering retrenching employees before the end of June in an effort to reduce costs and prevent their businesses from collapsing.
“If the current situation continues, many dealers will have no option but to cut staff. We simply cannot carry the cost of salaries, overheads and fuel purchases when we are expected to pay millions upfront for stock,” said one dealer who requested anonymity.
Fuel retailers argue that the viability of a service station business depends heavily on predictable fuel supply and workable payment arrangements. A single fuel delivery can cost well over N$1 million, making upfront payment requirements difficult for many independently owned stations to sustain.
Competition Concerns have also raised questions about commitments made during the regulatory approval process for the acquisition and transfer of service stations.
When competition authorities approved the divestment and transfer of certain fuel retail sites, a key principle was that affected businesses, employees and stakeholders should not be worse off following the transaction.
Industry participants argue that the intention behind those conditions was clear: retailers should remain commercially viable, jobs should be protected, and existing business arrangements should not be materially undermined.
Dealers now claim that the move towards upfront payment requirements is producing the opposite outcome.
“Retailers accepted the transition on the understanding that the commercial environment would remain stable. If dealers are now forced to finance fuel purchases upfront while simultaneously carrying payroll, utility costs and other operating expenses, then many businesses are undeniably worse off than before,” said one industry observer.
Impact on Employment as fuel retail industry supports hundreds of jobs across Namibia, particularly in smaller towns where service stations often serve as important local employers.
Any reduction in staffing levels could have significant social and economic consequences at a time when unemployment remains one of the country’s most pressing challenges.
Employees working as pump attendants, cashiers, supervisors, cleaners and administrative staff could be directly affected should dealers proceed with planned retrenchments.
Labour experts caution that once jobs are lost, they are often difficult to recover, especially in rural communities where alternative employment opportunities are limited.
Broader Economic Effects
Economists note that fuel supply disruptions extend far beyond individual service stations.
Reliable fuel availability is essential for transport operators, mining companies, farmers, tourism enterprises and logistics firms. Any instability in fuel distribution can create ripple effects throughout the wider economy.
When retailers are unable to secure fuel because of financing constraints, consumers may face shortages, businesses may incur additional transport costs and economic activity could slow.
The situation also places additional pressure on small and medium-sized enterprises that depend on consistent fuel supplies to conduct daily operations.
Industry stakeholders argue that while suppliers are entitled to manage commercial risk, solutions must be found that balance risk management with the long-term sustainability of retail operators.
Calls for Intervention as Affected dealers are calling on regulators, industry bodies and relevant authorities to engage all parties before the situation deteriorates further.
They argue that preserving jobs, maintaining fuel security and ensuring the survival of independently operated service stations should be national priorities.
Several dealers have urged Nasan Energies to reconsider its payment policies and engage constructively with retailers to establish financing arrangements that do not place excessive strain on businesses.
As pressure mounts across the sector, operators say the coming weeks will be critical.
“If nothing changes, more stations could run dry, more businesses could come under financial distress and more Namibians could lose their jobs,” one dealer said. “That would be a loss not only for retailers, but for the entire economy.”
Industry records indicate that Jean Blaise Ollomo, a businessman from Benin, serves as Managing Director of Nasan Energies.
Requests for Comment all questions sent on Thursday to both Nasan Energies and the Namibia Competition Commission (NaCC). At the time of publication, no responses had been received.
However, Vivo Energy Namibia provided clarification on the transaction, noting that the divestment of service stations was a regulatory requirement imposed as a condition of the Namibia Competition Commission’s approval of Vivo Energy’s acquisition of Engen Limited from Petronas in May 2024.
According to Vivo Energy Namibia, the Commission determined that a number of service stations should be divested to maintain a competitive and dynamic fuel retail market in Namibia.
The company stated that it worked closely with Nasan Energies and affected dealers throughout the transition process to ensure continuity of operations and a smooth handover.
Vivo further noted that, following completion of the transaction, Nasan Energies became the owner and operator of the transferred sites and is responsible for all commercial and operational matters relating to those stations.
“We are not able to comment on confidential commercial terms, nor on the internal commercial arrangements between Nasan Energies and its dealers, which are matters for Nasan Energies. We would not wish to speculate on the commercial position of individual dealers,” said Lazarus Nafidi, Corporate Communications Manager at Vivo Energy Namibia.
Vivo Energy referred interested parties to the joint press release issued by Vivo Energy and Nasan Energies on 27 May 2026, which outlines the details of the transaction. -Namibia Daily News
