On 24 August, the Republic of Namibia’s Ministry of Industries, Mines and Energy issued a media statement clarifying the Jet A-1 aviation fuel supply situation affecting Namibia and correcting misconceptions regarding the Government-directed fuel supply arrangement.
The statement, as supplied – reads as follows:
Jet A-1 Supply Disruption
The Ministry of Industries, Mines and Energy is aware of the challenges currently affecting the availability of Jet A-1 aviation fuel in Namibia. These challenges arise from the identification of a Jet A-1 consignment requiring further quality verification following its arrival at Walvis Bay. The consignment was identified during routine quality control testing, quarantined and isolated before release, and has not entered the aviation fuel supply chain. No off-specification product has been supplied for use in aircraft.
Commercial Matter
In view of the sustained public commentary, the Ministry considers it necessary to place the factual position on record. The affected consignment arises from an ordinary inter-company product arrangement between two oil marketing companies. Puma Energy Namibia made Jet A-1 available to Vivo Energy Namibia, to be replaced in kind. The consignment imported to replace the borrowed product is the consignment that did not meet specification on arrival at Walvis Bay and was quarantined. The present supply constraint is the operational consequence of that quarantine, pending the arrival of replacement product, due in-Country this Saturday.
Product loan arrangements of this kind are routine commercial practice in the petroleum industry and operate entirely between the companies concerned. Government is not a party to the arrangement and had no role in it.
Any implication of Government, or of the Government-directed fuel supply arrangement, in what is a commercial matter between the two companies is entirely incorrect.
While the origin of the matter is commercial, the continuity of national aviation fuel supply is of course, a matter of public interest, and the Ministry is acting accordingly, as set out below.
Jet A-1 Outside the Scope of the Government-directed Fuel Supply Arrangement
Recent commentary has suggested that the current Jet A-1 shortage is a consequence of the Government’s decision to introduce a single-supplier arrangement for petroleum products. That suggestion is misguided and conflates two separate supply arrangements.
The Government-directed fuel supply arrangement with Vitol was implemented as a targeted and temporary intervention to secure the continuity and affordability of petrol and diesel supply under exceptionally volatile international market conditions. By its terms, it applies to petrol and diesel only. It does not extend to Jet A-1 aviation fuel.
Jet A-1 is a non-controlled petroleum product. Its importation and supply are undertaken through the market by commercial industry participants, acting on their own account and at their own commercial risk.
It has been reported that the importing company concerned is affiliated with the international supplier, however, the Government-directed arrangement is confined to petrol and diesel. The Ministry urges stakeholders and commentators to maintain this distinction.
Responsibility
The origin and cause of the quality deviation are the subject of ongoing technical assessment. Until those processes are concluded, any attribution of responsibility for the quality deviation to a particular supplier, commercial arrangement or Government policy is premature. The Ministry will be guided by the results of the technical and quality control processes and will take appropriate regulatory action should any breach of the applicable requirements be established.
Continuity
The Ministry is working closely with the Namibia Airports Company, fuel suppliers, airlines and other aviation stakeholders to safeguard continuity of aviation fuel supply and to minimise disruption to flight operations. Airport operations will continue and the restoration of full passenger and cargo fuelling operations is an immediate priority. Passengers are encouraged to remain in contact with their airlines regarding any schedule adjustments.
Strengthening the aviation fuel supply framework
The incident underscores the strategic importance of aviation fuel to Namibia’s economy and national infrastructure, including commercial aviation, tourism, business travel, air cargo and other critical air transport services. The Ministry has a responsibility to ensure that the country’s aviation fuel supply chain is sufficiently resilient to withstand unforeseen disruptions.
The Ministry is therefore considering whether Jet A-1 should in future be brought within an appropriate regulatory and supply security framework, covering quality assurance, contingency stockholding, oversight and security of supply. Any such measures will be developed in consultation with the industry.
Single-supplier Context
The Ministry is aware of concerns with regard to a single-supplier model and a number of mitigating measures will be implemented once the system is fully operational.
The objective is to establish a supply system that appropriately balances security of supply, affordability, competition, price stability, commercial sustainability and national energy security.
Conclusion
The present Jet A-1 supply challenge is a quality and supply matter arising from a commercial arrangement between two oil marketing companies, separate from the Government-directed petrol and diesel supply arrangement.
The necessary technical and quality control processes must be allowed to run their course, while contingency measures protect the continuity of aviation fuel supply.
The Ministry will continue to monitor the situation closely and will communicate further developments promptly after those processes are concluded.
The Government remains committed to ensuring that Namibia has a reliable, safe and resilient fuel supply system and will take the necessary policy and regulatory measures to strengthen the country’s energy security.
