The National Petroleum Corporation of Namibia (Namcor) says the decision to award Vitol a three-month deal to supply fuel to Namibia is “commercially beneficial” and “aligned with national objectives”.
Namcor’s statement on Friday follows concerns raised by parliamentarians and the former acting managing director of Namcor, Maureen Hinda-Mbuende, who say the Vitol deal sidelined the state oil company.
“Participation in fuel procurement activities must be commercially sustainable and supported by prudent decision-making, effective risk management and sound governance,” Namcor spokesperson Utaara Hoveka says in the statement.
He says although Namcor has a role to play in securing the country’s fuel supply, the company is still recovering from previous financial and operational weaknesses.
The Namibian government had to pay N$1.2 billion through the National Energy Fund to suppoet Namcor in April 2024, and an additional N$401 million in July and August 2025.
“These interventions have produced encouraging results. [However], the company continues to face working capital limitations. The company, therefore, remains focused on consolidating the gains achieved through the turnaround strategy,” Hoveka says.
He says over the past few months it has been challenging for Namcor to source fuel. The company has had to pay up to 75 cents more per litre than the basic fuel price (BFP) calculated by the government, and additionally relied on guarantees to secure fuel.
“The current arrangement provides access to more competitive pricing at BFP flat, it reduces procurement and logistics risks, provides greater certainty of supply and enables Namcor to continue generating value through its storage and distribution infrastructure,” Hoveka says.
Energy minister Modestus Amutse told parliament on Wednesday that Namcor had submitted a bid to supply fuel in a bulk supply arrangement.
According to the minister, Namcor offered a price of 10 cents less per litre than the basic fuel price, but required a financial guarantee that the government was unwilling to provide.
Namcor’s statement did not address broader questions raised by critics of the deal, including whether Vitol would be able to secure valuable market intelligence on its competitors through the arrangement.
Vitol’s single-supplier agreement will run until the end of September, after which Amutse is expected to introduce new regulations for the bulk procurement of fuel.
