TotalEnergies has won the contract to supply about 345.3 million litres of petrol and diesel to Namibia over three months, in a deal the government says will save approximately N$220.5 million compared with the country’s current fuel supply arrangement.
Industries, mines and energy minister Modestus Amutse announced on Sunday that the TotalEnergies bidding group had emerged as the successful bidder in the government’s latest bulk petroleum import tender, with its trading company, TOTSA, designated as the supplying member.
The contract will run from November 2026 to January 2027, with the first shipment expected in November.
Under the arrangement, TotalEnergies will supply approximately 246.9 million litres of diesel and 98.4 million litres of petrol, representing Namibia’s projected bulk import requirements over the three months.
The latest tender further reduces the cost at which Namibia secures imported fuel, with the winning bidder offering to supply both petrol and diesel below the Basic Fuel Price (BFP).
The BFP is the reference price used in determining the cost of imported petroleum products before other components of Namibia’s regulated fuel-price structure are added.
TotalEnergies offered a 61-cent-per-litre discount on diesel and 71 cents per litre on petrol, according to the ministry.
Weighted according to the volumes Namibia expects to import, the ministry puts the average discount at 63.85 cents per litre.
Amutse said this would translate into savings of approximately N$220.5 million over the three-month contract compared with the current supply arrangement.
The numbers are significant because diesel accounts for almost three-quarters of the fuel covered by the contract.
At the quoted volumes, Namibia is expected to import about 2.5 times as much diesel as petrol during the period.
The ministry says the savings will not be paid directly to motorists but will flow into the national fuel price account, known as the slate, which is managed through the National Energy Fund.
According to Amutse, strengthening the slate gives the ministry greater room to manage fluctuations in international fuel costs and help maintain stability in domestic pump prices.
The announcement therefore does not mean petrol and diesel pump prices will automatically fall by 61 cents and 71 cents, respectively, in November. Retail fuel prices incorporate several other components, while the tender discount affects the import-cost component and the slate.
The latest bidding round also produced an unusual result: all four companies that submitted bids offered to supply Namibia below the BFP.
The ministry said none of the bidders sought a premium above the benchmark.
That represents a significant shift from Namibia’s previous bulk fuel procurement arrangements.
According to Amutse, Namibia had paid suppliers a premium above the BFP for imported petroleum products for years.
During the previous procurement round, that premium disappeared, with the successful supplier agreeing to deliver fuel at the BFP without an additional charge.
The latest tender has pushed procurement costs below that level.
“For years, Namibia paid more than the Basic Fuel Price (‘BFP’), the official reference price for imported fuel, to have its fuel supplied: suppliers charged a premium on top of that benchmark,” Amutse said.
“In the last supply round, the Ministry removed that premium entirely: fuel was supplied at the BFP itself, with nothing added.”
He said the latest tender had taken the process further, with all four bidders offering discounts rather than premiums.
The ministry awarded the contract through its BPIC-RFP 01/2026 competitive bidding process for bulk regulated petroleum products.
The ministry said it evaluated bids on four main considerations: bidder qualification, the price offered, risks to Namibia’s fuel supply security, and the supplier’s standing and track record.
Amutse said the ministry selected the winning bidder strictly on those criteria.
The ministry did not identify the other three bidding groups or disclose their respective discounts in Sunday’s statement.
Those figures could provide a clearer picture of how competitive the tender was and how far TotalEnergies’ winning offer was below its rivals’.
The contract is particularly important because Namibia remains dependent on imported refined petroleum products, making international product prices, freight costs, exchange rates and procurement terms significant components in determining domestic fuel costs.
The ministry said deliveries under the new arrangement would be scheduled to maintain supply security throughout the November-to-January period.
Amutse attributed the lower procurement cost to competition among suppliers and said the government intended to continue using competitive bidding to secure bulk fuel without compromising supply security.
