Fuel and Franchise Association of Namibia chairperson, appearing in coverage of Nasan Energies' acquisition of service stations and fuel supply disputes.
Fafa chairperson Michael LudekesaidVitol arrangement should buffer energy fund with no negative impact
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“"If the argument is accurate, why did the government go this route to procure fuel through Vitol for a period of three months? That should buffer the energy fund. It should not have a negative impact if it happens as stated," Fafa chairperson Michael Ludeke said yesterday.”
Fafa chairperson Michael Ludekestated in the letter thatNasan failed to honour undertakings or deliver fuel on time
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“"[This letter] records Nasan's failure to honour those undertakings [verbal promises] or to deliver paid-for fuel within the timeframe expressly committed to by Nasan.Fafa places Nasan formally on notice," Fafa chairperson Michael Ludeke says in the letter.”
Michael Ludekewroteletter dated 4 June 2026 accusing Nasan of failures
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“In a letter dated 4 June 2026, FAFA chairperson Michael Ludeke said Nasan launched a 'Bring the Cash Incentive' on 2 June, offering a 50-cent per litre rebate for full truck orders of 40,000 litres paid 24 hours before loading.”
Michael Ludekeconfirmed hearingreports from retailers about upfront payment demands and sent letter to government
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“Fuel and Franchise Association of Namibia (Fafa) chairperson Michael Ludeke last week confirmed to The Namibian that he had heard similar reports from affected retailers and intends to ask the government for clarity.”
Fafa chairperson Michael Ludekesaid agricultural fuel demand isoperational and predictable, not speculative
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“"Agricultural fuel demand is operational and predictable, not speculative. It is fundamentally different from the hoarding behaviour the directive rightly seeks to prevent," Fafa chairperson Michael Ludeke said in a letter to the minister seen by The Namibian.”
Michael Ludekesaid he is not aware ofany dirty ULP making the rounds in Namibia
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“"I'm not aware of any dirty ULP making the rounds in Namibia," chairperson of the Fuel and Franchise Association of Namibia Michael Ludeke said yesterday.”
Namibia's energy minister has suspended competition commission conditions that prohibited Nasan Energies from buying fuel from Vitol for five years following its acquisition of 42 service stations from Vivo Energy in May. The suspension is temporary and attributed to concerns about the state's fuel import costs and the financial strain on the National Energy Fund.
Why it matters
Minister's suspension of competition curbs on Nasan fuel purchases signals government action to manage national fuel import costs and energy fund strain.
Namibia's energy minister has suspended competition commission conditions that prohibited Nasan Energies from buying fuel from Vitol for five years following its acquisition of 42 service stations from Vivo Energy in May. The suspension is temporary and attributed to concerns about the state's fuel import costs and the financial strain on the National Energy Fund.
The government spent N$1.3 billion in two months to keep fuel prices low, draining the National Energy Fund to between N$200 million and N$300 million. Heavy spending began in April when international fuel costs rose, with the government paying N$805 million in April and N$490 million in May.
The Fuel and Franchise Association of Namibia says Nasan Energies failed to honour verbal promises to extend a cash incentive for fuel retailers ordering in advance and to deliver fuel on time. Nasan had agreed in a Tuesday meeting to extend the 50-cent-per-litre rebate past June until end of August and to offer seven-day credit terms to certain retailers previously supplied by Vivo Energy Namibia Limited.
The Fuel and Franchise Association says Nasan Energies has failed to deliver fuel paid for upfront and has not honoured agreements made with divested retailers. FAFA claims Nasan promised a three-month 'Bring the Cash Incentive' and to honour existing seven-day credit terms, but did not provide written confirmation and has failed to deliver orders within promised timeframes.
At least four service stations supplied by Nasan Energies have run dry in recent days as logistical, financial and supply issues plague the company's takeover of 52 new stations. Fuel and Franchise Association chairperson Michael Ludeke says retailers are being affected worst financially, particularly due to Nasan's shift from a "load-over-load" payment model to upfront payment for fuel orders.
Nasan Energies, which acquired 52 service stations from Vivo Energy, is requiring fuel retailers to pay upfront for fuel rather than the traditional post-delivery payment model. Retailers claim Nasan lacks operational cash flow and is forcing prepaid contracts that differ from the original Vivo agreements.
The minister of industries, mines and energy said he would clarify a directive issued Thursday that banned service stations from selling fuel in jerry cans or oil drums, after stakeholders in farming and tourism raised concerns. The ministry said the aim was to prevent panic buying, not to prevent legitimate purchases, though the Fuel and Franchise Association noted most Namibian farmers lack the consumer installation certificates required under the directive's exemption.
Motorists queued at service stations across Namibia yesterday to fill up before fuel prices rise by N$2.50 per litre for petrol and N$4 per litre for diesel on 1 April, prompting panic buying, hoarding, and complaints that wholesalers are withholding contracted supplies to profit from higher prices. The government says sufficient stocks exist and has reduced levies by 50%, but restrictions on bulk purchases by retailers like Agra are disrupting farming operations.
The government's N$500 million monthly fuel subsidy in response to rising oil prices is unsustainable and will not effectively help the poorest Namibians, according to economists. Several specialists argue direct cash grants to low-income groups would be more effective than broad price subsidies, while transport operators warn of industry strain from the fuel increases.
Botswana Oil flagged that fuel trucks loaded from Namcor's Walvis Bay terminal in early January failed quality tests for octane rating, raising concerns that substandard fuel may have entered Namibia's retail network and could damage engines. Namcor disputes the allegations, saying the product met specifications at discharge and underwent standard testing procedures.