WINDHOEK, June 12 — National Petroleum Corporation of Namibia (NAMCOR) said Friday that a coordinated fuel procurement arrangement is helping strengthen the country’s energy security, improve supply stability, and support the company’s ongoing financial recovery.
In a statement, the state-owned oil company said the arrangement is designed to ensure a reliable fuel supply to the domestic market while balancing affordability, commercial sustainability, and prudent risk management.
The statement comes after the Namibian government recently secured an emergency three-month fuel supply arrangement with global energy trader Vitol for the period from July to September, aimed at shielding the country from potential fuel supply disruptions and price pressures linked to heightened geopolitical tensions in the Middle East.
NAMCOR said it continues to recover from previous financial and governance challenges, noting that the Namibian government had intervened on two occasions in recent years to stabilize the company and safeguard national energy security.
Regarding the current fuel procurement system, NAMCOR said the coordinated arrangement enables it to secure fuel at more competitive prices compared with recent import costs, which had reached up to the Basic Fuel Price (BFP) plus 75 Namibian cents (about 4.5 U.S. cents) per liter.
“The current arrangement provides access to more competitive pricing at BFP flat, reduces procurement and logistics risks, provides greater certainty of supply, and enables NAMCOR to continue generating value through its storage and distribution infrastructure,” the company said. (Namibia Daily News / Xinhua)
