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Feature: Fuel price hikes ripple through Namibia's transport sector, burden commuters

Xinhua
| May 19, 2026
2026-05-19

WINDHOEK, May 19 (Xinhua) -- As dawn slowly breaks over the quiet Namibian town of Rehoboth, 49-year-old Danie Marais is already preparing for the long journey that has shaped much of his working life.

Around 7:00 a.m., he boards a privately operated shuttle bound for Windhoek, Namibia's capital, about 90 km away. For more than 21 years, the trip has been part of his daily routine.

These days, however, the journey is costing him more than just time.

Like many residents of Rehoboth, Marais depends on privately run shuttles and minibuses to get to work because the town has no formal municipal public transport system.

He said each trip now costs him between 60 Namibian dollars (about 3.6 U.S. dollars) and 70 Namibian dollars, with fares often rising alongside fuel prices.

"People are struggling. The amount we use on transport is not balanced with the low salaries we earn," he told Xinhua, adding that fares often fluctuate when fuel prices rise.

His frustration reflects a growing concern among ordinary Namibians after the government increased fuel prices earlier this month, citing rising import costs, global market pressures, and supply uncertainty.

The impact has quickly filtered into daily life, especially in the transport sector.

On Monday, a 15-percent increase in taxi and bus fares officially took effect nationwide following approval by the Ministry of Works and Transport and the Road Transportation Board.

Under the new fare structure, the minimum taxi fare rose from 13 Namibian dollars to 15 Namibian dollars, while trips to destinations without designated taxi ranks now cost 30 Namibian dollars.

Authorities said the adjustment was necessary to help transport operators cope with mounting operating costs while balancing the interests of commuters and service providers. According to local media reports, public transport fares had remained unchanged for four years despite steadily rising fuel and maintenance expenses.

The pressure is spreading beyond conventional taxis and minibuses. Local media reported that e-hailing platform Yango has also increased fares in Namibia by about 5 percent, partly to help drivers meet rising operational and compliance costs.

For many households already grappling with rising living costs, the increase has placed additional strain on monthly budgets.

Mitchell Goases, a recent graduate, said her family's transport expenses have risen sharply in recent weeks.

"As a customer, I previously budgeted 520 Namibian dollars a month for transport for two people... That amount has now increased to more than 600 Namibian dollars," she said. "The extra amount is absorbing my savings, and since I still have to cover other expenses, I am left with nothing."

The fuel price increase has also triggered broader concerns about supply behavior and possible shortages.

Following reports of panic buying and bulk fuel purchases after the latest adjustment, the Ministry of Industries, Mines and Energy instructed fuel retailers and resellers to exercise caution when dealing with customers seeking to fill drums, jerry cans, and other storage containers.

The ministry said the measure is intended to prevent artificial shortages caused by hoarding while still allowing farmers, tourism operators, businesses, and others with legitimate needs to purchase fuel in containers after providing supporting explanations or documentation.

According to the ministry, fuel hoarding following the April price adjustment contributed to a 25-percent increase in bulk fuel purchases, adding pressure on public finances.

To cushion consumers and stabilize the economy, the government said the National Energy Fund would absorb part of the under-recoveries and associated fuel premiums.

The fund is expected to cover about 805 million Namibian dollars linked to April's cumulative under-recoveries and fuel-related costs, the ministry added. Enditem

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