Road User Charges
Fuel Levy
Overview
In terms of the Road Fund Administration Act, 1999 (Act 18 of 1999), a fuel levy is a charge imposed on every litre of petrol and diesel sold in Namibia. The levy is included in the fuel’s selling price and is collected at the point of sale.
Fuel levies constitute the largest source of revenue for the Road Fund and play a central role in sustaining Namibia’s road infrastructure.
- A fixed amount is charged per litre of petrol and diesel sold in Namibia.
- The levy is included in the regulated fuel price.
- Fuel wholesalers collect the levy on behalf of the Road Fund Administration (RFA).
- The collected amounts are paid directly into the Road Fund.
N$1.98 per litre of petrol or diesel.
The fuel levy aligns with the user-pays principle, ensuring that those who use the road network contribute to its funding.
Because fuel consumption generally correlates with road usage:
- Vehicles that travel more consume more fuel.
- Heavier or less fuel-efficient vehicles contribute proportionally more.
The fuel levy, therefore, provides a broad, efficient, and equitable mechanism for funding road infrastructure.
Revenue from the fuel levy supports:
- Construction and rehabilitation of national roads
- Maintenance of the road network
- Urban and rural road upkeep
- Traffic law enforcement
- Road safety initiatives
- Road research and planning
Through this mechanism, road users’ contributions are directly linked to the preservation and development of Namibia’s transport infrastructure.
Fuel Levy Refunding System
Overview
The RFA implemented the Fuel Levy Refunding System on 1 April 2001. This system is not a rebate, but a structured refund mechanism.
It allows qualifying off-road fuel users to claim back a portion of the fuel levy component included in the purchase price of fuel.
The system promotes efficiency and equity, recognising that certain sectors use fuel for off-road activities that do not directly impact the public road network.
The following sectors and sub-sectors qualify for fuel levy refunds:
Agriculture
- Livestock production
- Agronomic production
Construction
- Civil construction
- Building construction
Other Qualifying Sectors
- Marine fishing
- Mining
- Railroad transport (TransNamib)
Refund claims primarily apply to diesel, which constitutes the majority of off-road fuel usage.
Claims for petrol may be considered where supported by sufficient evidence from qualifying sector groups.
Refund percentages are determined based on:
- Historical claims patterns
- Verified sector usage data
- Documented off-road fuel consumption
Only claims submitted by end-users of fuel are considered. Claims from bulk distributors or fuel agents are not eligible.
Before processing any refund, the RFA must receive proof that:
- The fuel levy component was deposited into the Road Fund
- The fuel was purchased from a licensed wholesaler under the Petroleum Products and Energy Act (Act 13 of 1990)
Fuel users in qualifying sectors must:
- Register with the RFA by completing the prescribed registration form (RF/R5).
- Specify the percentage of fuel used in each applicable sub-sector (where different refund percentages apply).
- Receive a user registration number upon approval.
Registered users must notify the RFA of any change in status and re-register where necessary.
Only registered users may submit refund claims.
Claims must:
- Be submitted on the prescribed form (RFA/R3)
- Be accompanied by original purchase invoices made out in the name of the claimant
- Include invoices from licensed wholesalers
Claims from other retailers may be considered on merit.
The Fuel Levy and its refunding mechanism:
- Ensure a broad-based contribution from road users
- Protect sectors engaged in legitimate off-road activities
- Promote efficient resource allocation
- Support the sustainable management of Namibia’s road network