WINDHOEK, July 6 – Namibia’s Energy Minister has lifted a restriction preventing Nasan Energies from sourcing fuel from global commodities trader Vitol, reversing a condition previously imposed by the country’s competition regulator following a review of the matter.
The decision, published in a government gazette on Monday, removes a five-year prohibition introduced by the Namibia Competition Commission in March as part of its approval of Nasan Energies’ acquisition of 52 Engen and Shell-branded fuel stations from Vivo Energy, a subsidiary of Vitol.
The restriction had required Nasan Energies to obtain fuel supplies from sources other than Vitol in an effort to preserve competition in Namibia’s downstream fuel market.
However, the review followed an earlier decision by Energy Minister Modestus Amutse, who in May granted Vitol an exclusive three-month fuel supply arrangement to help cushion Namibia against fuel price volatility linked to the conflict involving Iran and disruptions in global energy markets.
In his review ruling dated July 3, Amutse said he was required “to balance competition policy against wider public-interest considerations,” adding that factors including continuity of fuel supply, consumer protection and market stability justified lifting the restriction.
The decision is expected to intensify political debate within Namibia.
The opposition Independent Patriots for Change (IPC) has previously questioned the minister’s involvement in the review process. Senior IPC lawmaker Rodney Cloete told Reuters that the party would seek explanations in Parliament regarding the process that led to the decision and “have not ruled out the High Court to have the determination set aside.”
Following the ruling, the Namibia Competition Commission said it would continue monitoring developments in the fuel market for any signs of increased market concentration, anti-competitive behaviour or potential job losses resulting from the transaction.
Vitol has previously maintained that it complies with all applicable laws in the jurisdictions where it operates, while noting that the structure of Namibia’s energy market remains a matter for the country’s authorities to determine.
The latest development highlights the balancing act facing governments across Africa as they seek to maintain competitive markets while ensuring reliable fuel supplies amid continued volatility in global energy markets.
