Renthia Kaimbi
The Ministry of Industries, Mines and Energy has directed all fuel companies in Namibia to source their bulk petrol and diesel exclusively from Vitol between July and September 2026.
This decision has raised questions about procurement transparency and potential conflicts of interest.
In a letter dated 21 May 2026 and addressed to the Namibian Oil Industry Association (NOIA), industries, mines and energy minister Modestus Amutse informed industry players that the government had made what it described as emergency arrangements with Vitol, making the global commodity trader the sole supplier of fuel to Namibia for three months.
He instructed NOIA members to submit their fuel requirements for July and provide indicative demand figures for August and September by 10h00 on 21 May, less than 24 hours after the letter was issued.
Industry sources told the Windhoek Observer that fuel sourced through Vitol is often more expensive than fuel available from some competitors.
The government has reportedly justified the decision on the basis that Vitol agreed to supply fuel without requiring a letter of credit or financial guarantee from the Namibian government.
The appointment has also drawn scrutiny due to Vitol’s earlier connection to allegations of supplying substandard fuel to Botswana Oil Limited.
On 12 February, Botswana Oil rejected media reports suggesting it had distributed substandard fuel and said its quality assurance processes remained in place.
“Over the month of January 2026, Botswana Oil has imported ULP95 petroleum product from Namibia… Any adverse results from the screening process which indicated a lack of compliance with the required specification were sent to an independently accredited laboratory in South Africa for testing and validation. As a control measure, trucks carrying the consignment are isolated and quarantined,” the company said at the time.
A week later, Botswana Oil announced that chief executive officer Meshack Tshekedi would leave the company following a mutual agreement not to renew his contract.
The timing of the announcement led to speculation about whether the fuel issue played a role in the leadership change, despite Botswana Oil’s assurances that all non-compliant fuel had been isolated and independently tested.
The decision has also drawn scrutiny because of allegations regarding a close relationship between Vitol’s Mathews Hamutenya and President Netumbo Nandi-Ndaitwah.
The Windhoek Observer reported on 19 May that Nandi-Ndaitwah’s son, Ndeli Ndaitwah, is representing Miguel Hamutenya, the son of Mathews Hamutenya, in a legal challenge against a ruling by the Namibia Competition Commission (NaCC).
The case relates to Nasan Energies, which is 70% owned by Millennium Investment Holdings, a company controlled by Miguel Hamutenya.
Court documents show that Ndaitwah Legal Practitioners filed a review application on 8 April on behalf of Nasan Energies. The application challenges conditions imposed by the NaCC when it approved Nasan’s acquisition of 52 fuel stations from Vivo Energy and Engen Namibia.
Although the commission approved the transaction, it prohibited Nasan from sourcing petroleum products from Vitol, Vivo Energy or their affiliates for five years.
The NaCC cited concerns that Vitol already controls between 75% and 85% of Namibia’s intra-wholesale fuel supply market.
The appeal notice was signed by Amutse, who has now directed fuel companies to source exclusively from Vitol during the three-month period.
Responding to criticism on Saturday, Amutse rejected suggestions of wrongdoing and defended the arrangement as a temporary measure aimed at protecting consumers from sharp fuel price increases.
He said geopolitical tensions in the Middle East, which escalated on 28 February had significantly affected international oil markets and increased fuel costs.
Amutse said the government had already committed more than N$1 billion from the National Energy Fund to absorb fuel under-recoveries and premiums, leaving the fund’s previous surplus nearly depleted.
“This situation could not be allowed to continue unchecked,” Amutse said.
He stressed that the challenge facing government is not fuel supply but the cost of fuel.
“Left unaddressed, the combination of higher world prices, the premiums on our fuel, and a National Energy Fund that can no longer absorb them would push pump prices sharply higher from the start of July. That increase would be felt in every household, in the cost of transport, food and basic goods, a burden that will be felt most heavily by the most vulnerable among us.”
According to Amuste, the government approached several countries and oil companies in search of affordable fuel supplies that would not require additional premiums.
He said a number of offers were received, but Vitol’s proposal was selected because it could meet Namibia’s fuel demand at the basic fuel price without charging a premium or requiring public funds.
Other offers, he said, required guarantees or financial assurances.
Amutse also disclosed that bulk petroleum import coordination regulations are nearing completion and are expected to come into operation by the end of September 2026.
He said the regulations will allow the government to coordinate petroleum imports and implement reforms that industry stakeholders agreed to in 2023.
“There is nothing improper in the arrangements the Government has made to secure our fuel supply for the period July to September 2026,” Amutse said.
“They were made transparently, in the national interest and on terms that protect the consumer and commit no public money.”
Despite those assurances, questions remain among industry sources about whether the decision presents a conflict of interest, given Amutse’s involvement in the appeal seeking to overturn restrictions on Nasan Energies sourcing fuel from Vitol.
This also comes as the ministry on Friday decided to keep fuel prices unchanged for the month of June.
