Energy ministry notice comes too late for stranded Namibian motorists

A Ministry of Industries, Mines and Energy directive ordering fuel wholesalers to supply fuel and honour any outstanding contracts came too late for motorists, who waited in long queues and were turned away from empty service stations.

In an urgent notice published at 19h00 on Tuesday, energy minister Modestus Amutse said all fuel wholesalers and retailers should stop deliberately withholding oil supplies in anticipation of higher prices on Wednesday.

However, the notice came late for many motorists who had already struggled to find service stations with fuel.

“The ministry has issued a statement to say the service stations should supply fuel, but that’s just a statement, there was no action after that statement. Or there was no statement in advance to say all the stations must supply,” Khomas youth advocate Sem Billy David told The Namibian on Wednesday.

David, who was one of the motorists struggling to fill his car’s tank yesterday, said a warning to fuel wholesalers and retailers five days earlier would have protected customers.

“If you are sending it a few hours before the price increase, that is not an action,” he added.

The notice from the ministry came after the Fuel and Franchise Association reported to the minister that service stations had not received their contracted fuel supplies.

“Any unwarranted practice where oil supply is withheld today (31 March), either by licenced fuel wholesalers or licenced fuel retailers, and released tomorrow (1 April) for the sole purpose of maximising profit undermines the objective of ensuring the security of fuel supply in Namibia,” Amutse said.

He said all fuel wholesalers must deliver all outstanding fuel orders placed by retailers who have complied with payment terms. He added that fuel retailers may also not limit their sales of fuel in order to capitalise on higher prices.

“Should formal investigations uncover that the conduct of certain players created artificial shortages and undermined national fuel availability and security, appropriate punitive action will be taken,” the minister warned.

Fuel wholesalers will need to provide written justification for any volume reductions and non-deliveries.

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