The National Petroleum Corporation of Namibia (NAMCOR) has laid out plans to have its 50 percent fuel import mandate handed back to the company,
Managing Director, Immanuel Mulunga, told the Windhoek Observer this week.
“All I can say is that we are making an application to get the 50 percent mandate back. Once we make that application, the ministry will decide whether they will give it back to us. It will happen in the next two to three weeks,” Mulunga said.
This comes as Namcor chairman, Patrick Kauta, said in the company’s 2016/2017 Annual Report released recently, that the reinstatement of the 50 percent fuel import mandate remains a strategic objective of the group and the company had continued to engage the energy ministry over the matter.
Kauta said the company has solicited the services of a specialised service provider to help it close possible gaps and risks associated with the import mandate before making a submission to the ministry.
The mandate was revoked in 2010 after the company became technically insolvent.
Namcor first requested the restoration of its fuel import mandate in 2012 when current National Planning Minister, Obeth Kandjoze, was appointed as the managing director of the State-owned energy company.
Currently, fuel import mandates are limited to multinational oil companies operating in the country.
Namibia’s fuel consumption increased by 10 percent during the period 2012 to 2016 to reach 1,4 billion litres, the 2016/2017 Namcor Annual Report revealed.
The overall fuel consumption in the Namibian market grew by an average of two percent per annum over the past five years.
The bulk of this growth was attributed to the mining, construction and retail sectors, while the agriculture sector experienced a decline in the demand for fuel products.
The report showed that in 2016/17, fuel stocks purchased amounted to N$450 million.
Sales of refined products decreased by 13 percent during the period under review compared to the preceding period. The largest decline in sales is attributed to lower demand for Heavy Fuel Oils (HFO).
In terms of fuel oils in the market, sales for Gas Oil 500ppm were also down, mainly due to the slowdown in the economy and reduced government spending.
In contrast, sales of Gas Oil 50ppm increased by 41 percent as a result of new customers gained, while sales of Unleaded 95 increased by two percent.