Namibia has awarded TotalEnergies a bulk fuel supply deal covering about 345.3 million litres of petrol and diesel between November 2026 and January 2027. The arrangement is expected to save the country approximately N$220.5 million compared with the current supply arrangement.
Namibia’s Minister of Industries, Mines and Energy Modestus Amutse announced on Monday that the TotalEnergies bidding group had been selected as the successful bidder following an open competitive bidding process. Its trading company, TOTSA, has been designated as the supplying member under the agreement. The three-month arrangement includes approximately 246.9 million litres of diesel and 98.4 million litres of petrol. The first shipment is expected to arrive in November, marking the start of the bulk fuel supply deal.
Discounted Fuel Pricing to Deliver Savings
The successful bid provides discounts against the Basic Fuel Price (BFP), offering 61 cents per litre on diesel and 71 cents per litre on petrol. These discounts result in a weighted average discount of 63.85 cents per litre. According to the Ministry, the pricing arrangement is expected to deliver savings of about N$220.5 million during the three-month supply period. The savings will accrue to the national fuel price account, known as the slate, which is managed under the National Energy Fund.
The Ministry said the latest bulk fuel supply deal represents another reduction in Namibia’s fuel import costs. Previous supply arrangements had shifted from suppliers charging premiums above the BFP to fuel being supplied at the benchmark price. In the latest tender, all four participating companies offered to supply fuel at discounts to the BFP, while none requested a premium.
“For years, Namibia paid more than the Basic Fuel Price, the official reference price for imported fuel, to have its fuel supplied: suppliers charged a premium on top of that benchmark,” Amutse said.
“In the last supply round, the Ministry removed that premium entirely: fuel was supplied at the BFP itself, with nothing added. This round, we have gone a step further,” he added.
Government Continues Competitive Fuel Procurement
Amutse said the N$220.5 million saving would strengthen the government’s ability to keep domestic pump prices stable. The Ministry said the bids were evaluated using several criteria, including bidder qualification, pricing, security-of-supply risks and the standing and track record of each supplier. Amutse said the government would continue using competitive bidding to procure Namibia’s bulk fuel requirements while ensuring security of supply.
